Port Kembla FSRU project nearing FID

The Port Kembla gas project, the first LNG import terminal in New South Wales, has entered the last stage of preparation for the final investment decision. 

The project proponent, the Australian-led consortium, Australian Industrial Energy, on Wednesday said the front-end engineering and design (FEED) has been completed.

The consortium has also tagged Norway’s Höegh LNG for the supply of a floating storage and regasification unit (FSRU).

AIE further noted that the Environmental Impact Statement (EIS) has been submitted and reviewed, and a number of key commercial contracts including LNG supply, Port access, shortlisted EPC contractors, and customer offtake agreements are nearing finalization.

“Based on our extensive EIS we are hopeful of obtaining NSW Government Determination (Development consent) in the coming weeks,” the consortium said.

The project sponsors are now establishing an organizational structure to carry the project into its construction and operations phase.

With this change of focus and in line with his original appointment agreement, incumbent CEO, James Baulderstone is leaving the project, AIE said noting the leadership for the next phase will be subject to a further announcement.

To remind, the facility will have the capacity to supply in excess of 100PJ per annum, sufficient to meet over 70 percent of NSW’s total gas needs.

Construction of the terminal is likely to require a capital investment of between $200m and $300 million, AIE said in an earlier statement.

The consortium pushing the project forward comprises Australia’s Squadron Energy and Japan’s Marubeni and Jera.