Australia’s Viva Energy has entered into memoranda of understanding (MoU) with two consortia in relation to the development of an LNG regasification terminal at its Geelong refinery site in Victoria, Australia.
Viva first said that it was considering establishing an LNG import, supply and storage facility at its Geelong oil refinery in June 2020, and began an expressions of interest (EOI) process shortly afterwards.
The first MoU is with a partnership between ENGIE Australia & New Zealand and Mitsui & Co, while the second is with a partnership of Vitol and VTTI. Viva says that it will work with these partners with the inention of participating in the design and development stage of the gas terminal project. The MoUs do not include binding commitments for the capacity, ownership in, and offtake from, the terminal. These will be sought at the time of the final investment decision.
The partners will also work on further projects aimed at developing an ‘Energy Hub’ at the Geelong site, potentially including solar and gas electricity generation, hydrogen manufacturing and other renewable and lower carbon energy developments.
Viva says that the gas terminal project can be completed with minimal changes to the Geelong site, which already has an industrial facility, good port infrastructure and is integrated into the nearby energy infrastructure including the Victoria gas grid. It will form a ‘virtual’ pipeline for domestic gas into Victoria from both local and international sources.
‘We are very pleased to have such strong partners with experience and capability in LNG terminals and gas markets to assist us in continuing to fast-track our project through to a final investment decision. The project will bring new gas supply and competition to our domestic gas markets and is an important part of our wider vision to further develop Geelong as an Energy Hub for Victoria, and to support the transition of Victoria to lower carbon energies,’ says CEO of Viva Energy Scott Wyatt.