Japan consortium picks Port Kembla as site for Australia LNG import terminal
MELBOURNE (Reuters) - A consortium including Japan’s JERA Co and Marubeni Corp aiming to ship liquefied natural gas (LNG) to Australia’s east coast has chosen a site south of Sydney at Port Kembla for an import terminal, it said.
|The Port Kembla terminal would have the capacity to supply more than 100 petajoules per year, sufficient to meet more than 70 percent of New South Wales’ total gas requirements. (MAP SOURCE: EWA)
The project will allow access to a new gas supply for local industries in New South Wales state by 2020, the consortium, Australian Industrial Energy (AIE), said in a statement.
AIE also includes iron ore magnate Andrew Forrest’s Squadron Energy. Top global LNG buyer JERA is a joint venture of Tokyo Electric Power Co and Chubu Electric Power Co.
This is Australia’s second proposed LNG import terminal. The nation, despite being the No.2 LNG exporter, is grappling with a domestic supply gap, partly due to restrictions on exploration and production, and partly to producers selling gas to Japan, China and South Korea in long-term contracts.
Shipping LNG within Australia or importing from elsewhere is viable at the moment because LNG is cheap, but prices are expected to rise in the early 2020s.
The Port Kembla terminal would have the capacity to supply more than 100 petajoules per year, sufficient to meet more than 70 percent of New South Wales’ total gas requirements.
Building the terminal is likely to require a capital investment between A$200 million and A$300 million ($152 million and $228 million), AIE said.
Australia’s biggest power generator, AGL Energy, is also considering building an LNG import terminal off the neighbouring state of Victoria for taking up to 2.5 million tonnes a year, but that would be mostly for its own needs, to supply its gas-fired power stations and households.
As discussed in the HPI Market Data 2019 report, published in November by Gas Processing & LNG’s sister publication, Hydrocarbon Processing, rising propane and ethane supplies in the US have been enabled by greater production of shale gas.
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GasPro 2.0: A Webcast Symposium
The global LNG industry is becoming increasingly interconnected as grassroots export projects get off the ground. Another technology route for processing gas into fuels—GTL—is attracting renewed attention due to improving economics. Small-scale solutions for both LNG and GTL are at the forefront of new technological developments, while major projects using more conventional technologies continue to start up around the world.
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October 25, 2018 08:30 AM CDT