Port Kembla LNG import project faces delay
Published by Will Owen,
Editor
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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