Japanese duo exit proposed Australian LNG import project
Remaining consortium member to continue alone on proposed Port Kembla terminal
Japanese duo Marubeni and Jera have exited a proposed liquefied natural gas import project in the Australian state of New South Wales.
Australia’s Squadron Energy has acquired Jera’s 19.9% interest and Maurbeni’s 30.1% share in Australian Industrial Energy (AIE), taking its own interest to 100%.
The consortium was formed in 2018 and had been proposing to build the Port Kembla Gas Terminal in order to meet an expected domestic gas demand shortfall on the east coast of Australia, which is also the world’s largest LNG exporter.
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“Jera and Marubeni have been excellent partners and have both indicated they remain open to future opportunities for targeted involvement in the AIE Port Kembla Gas Terminal project, including LNG procurement, and the development of an associated gas-fired power station,” Squadron chairman Michael Masterman said.
AIE has applied for approval from the NSW government for consent to receive up to 46 LNG cargoes per year at the proposed import terminal at Port Kembla.
It claims the proposed A$250 million (US$176.15 million) project could supply more than 70% of New South Wales’ gas needs, with the project currently intended to handle some 1.8 million tonnes per annum of LNG under the existing development consent.
AIE also has an associated proposal to build an 800-megawatt gas fired power station at Illawarra, which would be fueled by gas from the terminal.
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