Page 9 - AsianOil Week 48 2020

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Jemena has said it will modify the EGP to be help to place downward pressure on gas prices
able to deliver more than 200 TJ (5.21 mcm) per and stimulate much-needed economic activity
day of gas from NSW into the Victorian market, across regional NSW.”
while being able to supply up to 450 TJ (11.72 The Port Kembla project, which carries an
mcm) per day to NSW. This will represent a 25% estimated price tag of AUD250mn ($184.45mn),
increase on its current capacity. involves the development of a gas terminal, a
Squadron CEO Stuart Johnston said AIE’s floating storage and regasification unit (FSRU)
MoU with Jemena would lead to the provision of and wharf facilities.
522 TJ (13.6 mcm) per day of transport capacity.
The deal comes just weeks after AIE Supply concerns
announced the signing of an up to 25-year lease The project is expected to supply more than
agreement with NSW Ports, paving the way for 75% of NSW’s annual gas needs – around 100 PJ
construction work to begin. AIE said it would (2.6bn cubic metres) – by the end of 2022. This
start the site handover process immediately and would put a sizeable dent in the 500mn cubic
that, once construction began, the project should feet (14.16 mcm) per day supply shortfall that
be wrapped up within 18-20 months. AEMO has warned could emerge in the East
“We believe we have secured the best site Coast market by the middle of the decade.
in Australia for this project and now with an Concerns over shortages helped AIE’s pro-
agreement for long-term tenure for the site and posed terminal secure a Critical State Significant
a pipeline agreement secured, the [Port Kembla Status (CSSI) designation in 2018.
terminal] remains the only project in the eastern The Australian Department of Industry,
states capable of assisting the NSW state govern- Science, Energy and Resources, meanwhile,
ment to overcome predicted gas shortages by said a new report last week that the pro-
2024,” Johnston said last week. jected supply tightness on the East Coast
Jemena managing director Frank Tudor said: market would likely support the develop-
“[This project] is not only the quickest and most ment of several planned LNG import ter-
efficient way of bringing additional gas to mar- minals, with four of five projects having
ket ahead of forecast shortages, but it will also reached the feasibility stage.

Week 48 03•December•2020 www. NEWSBASE .com P9