AGL has reached an agreement with the Port of Hastings Development Authority for the long-term use of Crib Point jetty Berth 2 for a proposed LNG import jetty.
The energy company aims to work through the commercial and stakeholder engagement process to enable a final investment decision on the Crib Point LNG Import Jetty during the 2019 financial year, with first gas planned for the 2021 financial year.
An announcement from AGL said the Port of Hastings Development Authority would begin jetty remediation works to prepare for AGL’s exclusive occupation of the berth, with a continuously moored floating storage and regasification unit (FSRU).
AGL managing director and CEO Andy Vesey said the project would deliver liquidity, increasing competition, putting downward pressure on wholesale prices and provide much-needed capacity.
“The Crib Point LNG Import Jetty Project has significant potential to provide AGL with the ability to deliver a new flexible source of gas supply to the southern states of Australia,” he said.
AGL estimates between 12 and 40 LNG carriers would moor alongside the FSRU to supply it with liquefied gas.
The FSRU would be connected by pipeline to an existing gas pipeline in Pakenham. AGL has signed an agreement with APA Group for the development, construction and operation of the pipeline.
APA is carrying out early work, but construction and operation is subject to regulatory approvals, licencing and a final investment decision from the AGL board.
Discussions about a possible LNG import terminal in New South Wales are also ongoing, with plans mooted for an FSRU to be moored at Port Kembla.