Dutch terminal operator Vopak is investigating the feasibility of developing an LNG import terminal in Port Phillip Bay in Victoria, Australia.
The terminal would be based on a floating storage and regasification unit (FSRU), and would supply households, industry and businesses during the energy transition in Victoria, which is facing a gas supply shortage. Vopak says that ‘several existing gas market participants’ have already signed MoUs for the development of the facility, but did not give any further information.
Vopak LNG is already a partner in four LNG storage facilities across the world.
In a statement to Reuters, Vopak said that it hopes to submit a proposal for the facility to the Victoria state government by Q3 2021, and is aiming for the first imports after 2024, when Victoria expects to be facing the gas shortages after the ageing gas field that currently supply it dry up. The FSRU will be able to import up to 50 LNG cargoes a year with an open access model, and Argus Media reports that it will have a capacity of 636–849TJ/d (17–22.7 million m³/d).
‘Expectations are that any LNG terminal would need to act as a peak shaver for winter demand in the near term, depending on the profile of decline of domestic gas production in southeast Australia,’ Vopak Australia managing director Fulco van Geuns told Reuters, adding: ‘With reducing domestic gas and the current pipeline capacity from Queensland domestic gas supply sources, Vopak believe that an import terminal makes most sense to be positioned in Victoria.’