Oz Port Kembla Import Terminal Signs Up First Customer
Australian Industrial Energy (AIE) has reached a preliminary agreement with energy retailer EnergyAustralia to supply gas from its proposed LNG import terminal at Port Kembla near Sydney, AIE said May 22.
The terminal will supply 15 petajoules/year of gas starting January 1, 2021 for five years. EnergyAustralia, being AIE’s first customer, will supply the gas to its residential and industrial customers as well as use it for electricity generation. AIE is a joint venture comprising Squadron Energy, Japan’s Marubeni Corporation and Jera.
Last month the A$250mn (US$176mn) Port Kembla LNG (PKGT) import terminal received developmental consent from the New South Wales government. “Having now received planning consent, AIE’s PKGT project is the most advanced LNG import terminal project on the Australian east coast,” AIE said.
Speaking on behalf of the AIE, Squadron CEO Stuart Johnston said: “Our agreement with EnergyAustralia shows that the Port Kembla gas terminal is a real solution for Australian energy retailers and manufacturers looking to avert the looming gas supply crisis.”
“We have negotiated a market competitive, oil linked price with EnergyAustralia. It’s an agreement that provides their business with certainty in the face of increasingly challenging domestic gas market supply,” he said.
AIE plans to import up to 100 petajoules/yr (2.67bn m3/yr) starting from 2020 at Port Kembla, New South Wales.