Hoegh LNG: work progresses on Port Kembla terminal

Squadron Energy’s Australian Industrial Energy (AIE) is moving forward with construction work on its Port Kembla import terminal in New South Wales to prepare the facility for the arrival of Hoegh LNG’s 2019-built FSRU Hoegh Galleon.

Hoegh LNG’s team led by CEO Erik Nyheim has spent a week with its partners from Squadron Energy on a visit of the LNG import facility, according to a social media post on Monday by the Norwegian FSRU player.

“Great progress has been made to finalize the physical infrastructure of the terminal in preparation for the upcoming arrival of Hoegh Galleon, which has been under the commercial control of Squadron since October 2023,” the company said.

“The LNG terminal will provide firming capacity for Squadron’s renewable energy portfolio while also providing crucial access to LNG in a time of regional gas deficits and pipeline transportation constraints from Northern Australia,” it said.

Hoegh LNG did not provide information regarding the expected launch of the facility.

Back in 2022, Hoegh LNG and AIE confirmed the long-term FSRU charter deal for the latter’s Port Kembla import terminal in New South Wales.

The FSRU contract has a term of 15 years with early termination options for AIE after year 5 and 10.

Hoegh LNG said in November that the FSRU had started its charter with AIE.

The unit with a regas capacity of 384 mmscf/d is currently working as an LNG carrier prior to its employment in New South Wales.

Squadron Energy’s latest update said that it expects to launch the Port Kembla facility in winter 2025/2026.

The company claims the facility, which includes a jetty and the connecting pipeline, will have the capacity to supply more than 70 percent of NSW’s gas needs.

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