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Port Kembla LNG import project faces delay

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LNG Industry,


Reuters is reporting that Australian Industrial Energy (AIE)’s plans regarding its Port Kembla LNG project have hit a hurdle and the project is facing a delay.

Backed by Japan’s JERA, Marubeni Corp. and Squadron Energy, AIE is struggling to lock-in customers for its new import terminal. Indeed, potential buyers, such as Origin Energy, are holding off signing contracts after a recent decline in local gas prices.

This lack of deals, and subsequent delay, has left the US$171 million Port Kembla project significantly behind its original schedule for delivering gas in late 2020. Such a delay risks AIE’s aim of opening Port Kembla before AGL Energy’s rival project – both projects are racing to meet the looming gas shortage facing Australia.

As a result of this latest setback, AIE’s backers are reportedly no longer predicting when Port Kembla will deliver first gas.

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/04112019/port-kembla-lng-import-project-faces-delay/

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