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    GasLog, Venice Energy ink FSRU pact

Summary

Venice is proposing a A$200mn LNG import facility to boost gas supply to South Australian domestic and industrial users.

by: Shardul Sharma

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GasLog, Venice Energy ink FSRU pact

GasLog has signed an initial agreement to negotiate a charter party for the supply of floating storage and regasification unit (FSRU) to Venice Energy as part of a proposed new LNG import terminal project in South Australia, the companies said on July 6.

Managing director of Venice Energy, Kym Winter-Dewhirst, said the signing of the heads of agreement between the two companies is a major step forward for the project, which is being developed in Outer Harbor, Port Adelaide.

Venice is proposing a A$200mn ($152mn) LNG import facility to boost gas supply to South Australian domestic and industrial users. The proposed facility is expected to bring around 2.12bn m3/yr of LNG into South Australia.

“We believe this project will provide a positive contribution to the South Australian energy market through helping to deliver cleaner energy to underpin the renewable sector,” GasLog CEO Paul Wogan said.

GasLog will provide a technical support crew to operate the facility over the life of the operations. Government and other approvals for the project are due in the next few months, it said, followed by an anticipated 12-month construction period from financial close that will see the first shipment of LNG into the facility and connection to the state’s gas network by end of 2022 to early 2023.