Page 4 - GLNG Week 48 2021
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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
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