Australia’s Viva Energy has entered into commercial agreements with GeelongPort for the planned FSRU-based LNG import terminal at its Geelong refinery.
According to a statement by Viva Energy on Wednesday, the deal includes construction and provision of necessary pier and berthing infrastructure for the LNG import project.
The new agreement involves the construction of an extension to the existing refinery pier to provide an additional berth for a permanently moored FSRU which will be capable of receiving LNG imports from visiting vessels.
Also, GeelongPort will construct the extension to the existing pier and license it to Viva Energy.
Viva will construct the related infrastructure including a gas pipeline and treatment facility to enable gas to be supplied into the network.
The Australian firm says this facility would provide a “flexible and reliable supply of gas” to meet Victoria and South East Australia’s ongoing energy needs within the backdrop of rapidly declining local gas production and forecast shortages expected to impact consumers over the next few years.
In December, Viva signed deals with Woodside and Hoegh LNG for the planned FSRU-based terminal.
Woodside plans to book regasification capacity while Hoegh would provide the FSRU.
Prior to these deals, Viva signed initial agreements in 2020 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.
“Important step”
Viva said this new deal with GeelongPort reflects an “important step” in approval and development of the LNG terminal.
In addition, it provides a “clear pathway” to the construction and delivery of the necessary infrastructure underpinning the project.
The start of construction remains subject to certain conditions, including Viva Energy taking a final investment decision and the Minister for Planning’s assessment of the environmental effects of the project, it said.