Woodside in talks to supply LNG to Viva's regas terminal
Australia’s biggest gas producer Woodside is in talks to supply LNG to an LNG import and regasification terminal that Viva Energy is planning to build in the state of Victoria, the companies said on December 9.
The parties have entered into a memorandum of understanding (MoU) under which Woodside will discuss with Viva the opportunity to acquire regasification capacity usage rights at the terminal to regasify LNG.
“This could help underpin the gas terminal project as a key infrastructure solution to address the expected gas supply shortfall in the east coast Australian market from the mid-2020s, and support the National Electricity Market’s transition to lower-carbon energy,” Woodside said.
Subject to regulatory approvals, Viva is planning to take a final investment decision to proceed with the project by the third quarter of 2022.
“Woodside’s experience and capability in LNG supply, shipping, terminals and international gas markets will assist us in progressing the gas terminal project to a final investment decision,” Viva CEO Scott Wyatt said.
Viva signed MoUs with the two consortia in December last year for the development of the terminal. The company signed the MoUs with a partnership between Engie Australia & New Zealand and Mitsui & Co. and a joint venture between Vitol and VTTI. The partners will potentially work with Viva in designing and developing the terminal.
The terminal will serve as part of the broader Geelong energy hub in Corio, which also comprises an oil refinery operated by Viva. The company first announced plans to establish an LNG import terminal in June last year. According to Viva, the project will make use of existing port and energy infrastructure, including access to Victoria's gas transmission network, making it significantly more competitive than rival proposals.