Page 9 - AsianOil Week 14 2021

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storage caverns and also to the Canadian and intervention in the operation of the market.
Mexican markets. Development should be market-driven, and
McConville said: “The US domestic market large-scale changes driven by the require-
also has the benefit of enormous scale, being ments of existing and future participants.”
around 50 times the size of Australia’s East Coast McConville added that all market
domestic gas market.” participants, and not just gas produc-
The executive would rather see Australia ers, needed to submit activity reports in
develop its own system driven by local market order to ensure the efficient operation of
needs. He said that while Wallumbilla has a role markets. He said: “Currently, there is no
to play in any gas-fired recovery, any reporting emphasis placed on improved transpar-
requirements put in place must be fair. ency around the activities of domestic
He said: “We need to ensure the Hub struc- consumers of natural gas and that needs to
ture should minimise the need for government change for this concept to be successful.”™

Viva upbeat about proposed

LNG import project

PROJECTS & AUSTRALIAN refiner and fuel marketer
COMPANIES Viva Energy is upbeat about the potential
of its proposed liquefied natural gas (LNG)
import project in Victoria after the state
government blocked a similar project on
environmental grounds.
The Victorian government blocked utility
AGL Energy’s proposed Crib Point LNG import
terminal on March 30, citing concerns about the The government reached its decision after
project’s location in a Ramsar wetland of interna- a 10-week independent inquiry and advisory
tional significance. committee (IAC) hearing delivered its findings
Viva Energy has said the proposed develop- in February. The IAC hearing was launched
ment next to the existing Geelong refinery would after an environment effects statement (EES)
have a much lower impact on the environment. attracted more than 6,000 submissions.
The ASX-listed firm unveiled its plans to Victorian Planning Minister Richard Wynne
build an LNG import terminal next to the said: “This has been an exhaustive, open and
128,000 barrel per day refinery in June 2030, transparent process and this is the right outcome
noting that the development would turn the area for the local community, the environment and
into an energy hub. Victoria as a whole. It is probably one of the most
The energy hub project includes the extension intense EES processes we’ve had in this state in a
of the refinery’s existing pier and the installation very long time.”
of mooring facilities for a floating regasification Viva, meanwhile, has positioned the project
and storage unit (FSRU), with a capacity to meet as the answer to Victoria’s projected gas supply
around half the state’s total gas demand. shortfalls that remain a near-term risk, despite
“Viva Energy believes that the proposed loca- more upbeat forecasts from the Australian
tion of our terminal – adjacent to the Geelong refin- Energy Market Operator (AEMO).
ery in an existing industrial area and working port AEMO has said an anticipated shortfall in
– is a key advantage,” a spokesman told local daily natural gas supplies can be delayed as long the
The Sydney Morning Herald on April 7. “The pro- country begins importing LNG by the end of
ject is not located within a Ramsar wetland, and 2023, with Squadron Energy’s Port Kembla
we intend to re-use seawater from the terminal, Gas Terminal (PKGT) flagged as the most
recycling it through the refinery and minimising likely candidate, given that its development is
the impact on the Corio Bay environment.” the most advanced.
The Melbourne government rejected AGL’s AEMO warned that southern supply was
proposed AUD250mn ($191mn) FSRU-based at risk if PKGT was delayed, Victorian winter
project terminal, as it would have “unacceptable gas demand spiked or gas production outages
effects” on the Western Port environment. emerged.™

Week 14 08•April•2021 www. NEWSBASE .com P9