Australia’s Venice Energy is moving to accelerate the construction schedule for its delayed Outer Harbor liquefied natural gas import project near Adelaide and now hopes to take the final investment decision in the coming months.
Venice held investor roadshows in Australia’s east coast capitals, supported by its leading advisor Sequoia Capital, last week.
“We have been fortunate to secure strong backing including from Brigg Macadam debt advisors in the UK to put together the investors to underwrite our project and ensure we reach a final investment decision in the coming months,” Venice managing director Kym Winter-Dewhirst said.
Against this backdrop, Venice has been advancing negotiations with potential off-takers of the regasified volumes.
“Bringing customers and investors together is always a challenge for any project, but as the first LNG terminal in the world to be powered by renewable energy there is strong support for the ESG credentials of what we are delivering,” he said.
Venice now expects to start building the terminal and related facilities in the second half of this year with first gas entering the state network by 2024 — or earlier, depending on off-taker demand.
GasLog last year signed a heads of agreement to negotiate a charter deal for the supply of the Outer Harbor floating storage and regasification unit. GasLog will also provide a technical support crew to operate the 146,600-cubic metre vessel.
The import project will also involve two new wharfs, loading arms, cryogenic piping and shore-based infrastructure with the ability to supply up to 140 petajoules of gas per annum into the South Australian and Victorian markets.
Venice is currently finalising a joint feasibility study with the owners of the 680-kilometre SEA Gas pipeline between the two Australian states that will make the pipeline infrastructure bidirectional.
This would allow delivery from the Outer Harbor Project to customers in South Australia and Victoria and “would ensure Victoria is able to meet its winter gas peak demand in 2024 and beyond”, Venice noted.
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