Financial Advisor Hired for Oz LNG Import Project
South Korean LNG developer Epik has hired the Australia and New Zealand Banking Group (ANZ) as a financial advisor at its Newcastle GasDock LNG import project in New South Wales (NSW).
ANZ will provide debt and equity advisory services, in preparation for Epik taking a final investment decision on the LNG project, expected in mid-2020, the developer said in a press release on November 6.
“We are pleased to be partnering with EPIK as financial adviser in the development of this critical infrastructure project, which is uniquely positioned to provide competitive gas supply to the region,” ANZ’s executive director Ian Wainwright commented.
NSW relies on interstate imports for around 95% of its gas supply, with recent market volatility leading to price increases. Epik plans to install a 170,000-m3 floating storage and regasification unit (FSRU) capable of supplying more than 80% of NSW’s gas demand, at a projected cost of $400-430mn. The project was awarded critical status by the NSW government in August.
Epik has secured environmental and planning support from London-based Arup, engineering services from Australia’s Watpac, and legal and regulatory counsel from US firm K&L Gates. It also hired Edinburgh-headquartered WoodMackenzie in July to analyse the southeast Australian gas market.
Epik expects to place an order for the FSRU newbuild with a shipyard after securing regulatory clearance, anticipated early next year. According to local authorities, the facility could be up and running in 2022 or 2023.