AG&P LNG announced on Wednesday that its unit AG&P LNG Australia and the unnamed Australian fim have signed a memorandum to jointly explore power generation and energy infrastructure opportunities across the National Electricity Market (NEM).
The partnership will explore power generation projects that could serve as anchor offtaker for AG&P LNG’s proposed Outer Harbor LNG terminal in South Australia.
In addition to joint development opportunities, the memoradum includes a pathway for the
Australian energy company to become a significant offtaker of the terminal in its own right—independent of new generation projects—through its existing portfolio of assets across the NEM, according to AG&P LNG.
“With key commercial agreements in place, AG&P LNG is advancing the Crown-sponsored, fully approved Outer Harbor LNG project toward a final investment decision,” said Karthik Sathyamoorthy, CEO, AG&P LNG.
John Nicholson, managing director, AG&P LNG Australia, said the terminal requires only 600 meters of new pipeline and additional compression of the existing SEA gas pipeline to supply 250+ TJ/day into Victoria.
“Through constant reinjection into the Iona storage facility during winter, we think this can effectively double Iona’s storage capacity into the SWP, ensuring Iona remains operational through the forecast winter shortfalls post 2028,” Nicholson said.
AG&P LNG noted it aims to maximise the use of the existing infrastructure, working with existing customers and suppliers rather than seeking priority over them to supply the market.
The company claims it is “uniquely positioned” among the proposed LNG Australian import
terminals – with a portfolio of terminals, AG&P can offer a “flexible and competitive” gas
supply solution managing the LNG trading with gas retailers.
Venice Energy
Australia’s Venice Energy announced on Tuesday that it has agreed to sell its project to AG&P LNG.
According to the Australian firm, this follows a “complex series of negotiations” over the past eight months after the signing of a binding term sheet between the two companies in October last year and a full-formed investment agreement that was settled and signed on Monday.
The company previously said that its 2 mtpa Outer Harbor LNG import terminal is worth about A$300 million ($195.5 million)
Venice Energy chair, Kym Winter-Dewhirst, said the agreement means AG&P LNG will provide 100 percent of project financing and will construct and operate the terminal.
A final investment decision is expected later this year.
FSRU conversion
In February last year, Venice Energy signed a deal with AG&P LNG to secure a converted FSRU for its planned project.
The company said that Greece’s GasLog sold the vessel assigned to Venice Energy’s project to AG&P LNG.
Venice signed a heads of agreement with Greece’s GasLog in July 2021, under which the latter agreed to supply an FSRU for the project.
AG&P LNG will convert a 145,000-cbm LNG carrier to an FSRU with a peak sendout capacity of 400 mmscfd.
