Australia’s Viva Energy said it has signed deals with Woodside and Hoegh LNG for the planned FSRU-based LNG import terminal at its Geelong refinery.
Woodside and Viva Energy have entered into a memorandum of understanding to progress discussions on capacity rights at the regasification terminal in Geelong, Victoria, which could enable Woodside to supply LNG to the east coast Australian market.
Under the terms of this deal, Woodside would discuss with Viva Energy the opportunity to acquire regasification capacity usage rights at the terminal to regasify LNG.
This could help underpin the project as a “key infrastructure solution to address the expected gas supply shortfall in the east coast Australian market from the mid-2020s, and support the National Electricity Market’s transition to lower-carbon energy,” Woodside said in a statement.
The memorandum provides a framework and timeline to negotiate binding regasification capacity commitments, to be finalized in definitive agreements executed following Woodside and Viva Energy approvals prior to a final investment decision targeted for the third quarter of 2022, it said.
Prior to this deal, Viva signed initial agreements last year with two consortiums that showed interest in supporting the LNG import project.
The first consortium includes Engie’s local unit and Japan’s Mitsui & Co, while the other consists of trader Vitol and energy storage provider VTTI.
Hoegh LNG deal
Besides signing the memorandum with Woodside, Viva Energy is also looking to charter a floating storage and regasification unit from Hoegh LNG.
In that regard, Viva Energy and Hoegh LNG signed a heads of agreement.
Viva Energy said this deal sets out a framework and key terms for the negotiation of a binding time charter party (TCP) agreement and is a “material step in the delivery” of its LNG import development, confirming an FSRU provider for the project.
Moreover, the two firms would finalize the full terms of the TCP in coming months, subject to the project achieving final investment decision and other conditions.
Hoegh LNG’s fleet consists of ten modern FSRUs and two LNG carriers. Hoegh LNG Partners operates five of these vessels.
The floating player recently also signed a long-term FSRU charter deal with Australian Industrial Energy (AIE) for the Port Kembla import terminal in New South Wales.