Australian Industrial Energy received planning approval from the New South Wales Department of Planning, Industry, and Environment to increase the capacity of its proposed Port Kembla gas terminal south of Sydney.
AIE says the LNG import terminal will now be able to deliver more than 100 petajoules of gas/year to customers. The approval makes a 2020 final investment decision possible, the company said.
The modification will enable the terminal to match gas supply with the seasonal demands of both the industrial and retail markets, particularly the winter peaks.
The increased capacity approval also includes an increase in the number of LNG carriers delivering to the terminal, allowing for more flexibility in the delivery schedule.
AIE continues discussions with potential customers to firm up supply contracts. Construction is expected to take 14-16 months once FID has been made.
Spiecapag and Soletanche Bachy have been appointed to construct the project. Hoegh Galleon has been secured as the terminal’s floating storage and regasification unit.
AIE said it could be supplying customers in New South Wales by early 2022.
AIE is a joint venture of JERA, Marubeni, and Squadron Energy, the latter a private company owned by Western Australian mining magnate Andrew Forrest.
