Floating LNG player Hoegh LNG said on Friday that Australian Industrial Energy (AIE) has confirmed a long-term FSRU charter deal for its Port Kembla import terminal in New South Wales.
The two firms signed the deal in November last year and AIE, owned by Australian businessman Andrew Forrest’s Squadron Energy, has now lifted its final subjects for the FSRU contract, Hoegh said in a statement.
The FSRU contract has a term of 15 years with early termination options for AIE after year 5 and 10.
AIE has the right to time the start-up of the contract between 2023 and 2025, depending on its requirements, Hoegh said.
The Australian firm picked the 170,000-cbm Hoegh Galleon to serve the facility at Port Kembla.
It previously said that it had expected the LNG import facility to go online by mid-2023, making it the first project of its kind in Australia.
The Port Kembla terminal will have the capacity to deliver over 100 petajoules of natural gas each year. This represents about 75 percent of NSW total market needs, according to AIE.