Page 4 - GLNG Week 48 2021

GLNG COMMENTARY GLNG

Hoegh wins FSRU contract for

Australian import project

Hoegh LNG has secured a contract to supply the floating storage and

regasification unit for Australia’s planned Port Kembla import project

PROJECTS & THE proposed Port Kembla LNG in New South cancelled its proposed Crib Point LNG import
COMPANIES Wales has taken another step towards becoming plan earlier this year after the State of Victoria
Australia’s first LNG import project. Port Kem- rejected the proposal. Five proposals are cur-
WHAT: bla’s developer, Australian Industrial Energy rently on the table.
Hoegh LNG has secured (AIE), announced this week that it had con-
a contract to supply the tracted Norway-based Hoegh LNG to supply the Port Kembla push
FSRU for Australia’s floating storage and regasification unit (FSRU) Gas received at the Port Kembla project would
planned Port Kembla for the project. be sent to the main Australian East Coast gas
project. Under the long-term agreement, the Höegh transmission network. In April 2020, the New
Galleon will serve the Port Kembla terminal, South Wales government approved a request to
WHY: which AIE expects to be operational by mid- increase the number of LNG carriers that would
Australia is seeking to 2023. Construction has started on berth facil- arrive at the terminal to up to 46 per year. AIE
offset declining domestic ities at the terminal and the project is currently made the request in anticipation of higher gas
gas production. on course to be the first LNG import facility in demand, especially during the winter months.
Australia. AIE estimates that the Port Kembla project
WHAT NEXT: The development comes as Australia seeks to will require AUD250mn ($194mn) for con-
Port Kembla LNG’s address declining domestic gas production. This struction and will be able to handle 1.8mn
developer is targeting is despite the fact that the country is a leading tonnes per year (tpy) of LNG.
a start-up date of exporter of LNG currently – however, it faces
mid-2023. depletion of its reserves over the long term. Going green
Indeed, consultancy EnergyQuest estimates Hoegh and AIE are also now trying to bolster
that all of Australia’s existing LNG export pro- their environmental credentials as energy devel-
jects could exhaust their proven and probable opers to contend with aligning their plans with
(2P) reserves by 2050 in the absence of new the energy transition. AIE said it had agreed with
production. Hoegh to collaborate on the “future design and
As a result of these concerns, a handful of development of a new generation FSRU capable
LNG import proposals have emerged, with of receiving clean fuels, which can be used as part
some more likely to be built than others. Port of future green energy supply chains”.
Kembla is leading the pack, while AGL Energy While the final design of the new FSRU

P4 www. NEWSBASE .com Week 48 03•December•2021