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2 minutes read

Australia’s Venice plans for August FID on LNG terminal

Australian LNG terminal developer Venice Energy is targeting a final investment decision (FID) by August for its proposed 1.7 million t/y Outer Harbor LNG import terminal in Adelaide, South Australia.

Venice said it was continuing to court investors for the A$300 million ($200 million) project, with formal negotiations underway with several major companies, after securing a floating storage and regasification unit from Singapore-based AG&P in February.

The proposed terminal has attracted “strong interest” from US and Asian companies, Venice said, after initial talks with Australian utility Origin Energy in February ended without agreement on a proposed 10-year deal for exclusive use of its import capacity.

“Our goal is to finalize [an investment deal] and push hard for an FID by August this year, with a construction start date in October,” Venice Energy chairman Kym Winter-Dewhirst said on June 6. Construction and commissioning of the plant is expected to take two years.

The looming seasonal gas shortage in southern Australia means the likelihood of LNG imports into the region is increasing. Fortescue-owned Australian developer Squadron Energy’s 2.4 mtpa Port Kembla LNG terminal will be connected to the Eastern Gas Pipeline linking the states of Victoria and New South Wales in late 2023, ahead of a likely mid-2026 start-up.

Venice said it was continuing to court investors for the A$300 million ($200 million) project, with formal negotiations underway with several major companies, after securing a floating storage and regasification unit from Singapore-based AG&P in February.

The proposed terminal has attracted “strong interest” from US and Asian companies, Venice said, after initial talks with Australian utility Origin Energy in February ended without agreement on a proposed 10-year deal for exclusive use of its import capacity.

“Our goal is to finalize [an investment deal] and push hard for an FID by August this year, with a construction start date in October,” Venice Energy chairman Kym Winter-Dewhirst said on June 6. Construction and commissioning of the plant is expected to take two years.

The looming seasonal gas shortage in southern Australia means the likelihood of LNG imports into the region is increasing. Fortescue-owned Australian developer Squadron Energy’s 2.4 mtpa Port Kembla LNG terminal will be connected to the Eastern Gas Pipeline linking the states of Victoria and New South Wales in late 2023, ahead of a likely mid-2026 start-up.

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