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.
“Firstly, the regasification terminal will provide energy security to South Australia from 2028 onwards and secondly help alleviate forecast shortfalls in the gas supply market along the southeast of Australia,” Winter-Dewhirst said.
The terminal has already been approved by the South Australian government and site enabling works were completed earlier this year.
Venice Energy and AG&P LNG have been working together over the past eight months
on securing off-take customers through a combination of long-term and short-term to mid-term gas sales agreements, the Australian company said.
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.
