Japanese trading and investment house, Marubeni, has signed a memorandum of understanding with Venice Energy to join the latter’s FSRU-based LNG import project in the Port of Adelaide, South Australia.
This move comes less than two years after Marubeni and compatriot Jera decided to exit Australian Industrial Energy’s Port Kembla FSRU-based import terminal in New South Wales.
Venice Energy said in a statement on Friday that as part of the deal with Marubeni it would create a joint venture partnership for its A$260 million ($177 million) project under development in South Australia.
Managing director of Venice Energy, Kym Winter-Dewhirst said in the statement that the company “remains on track” to begin on-ground works in the second half of this calendar year.
“Through this agreement Marubeni will bring significant skills and expertise to the project and ensure a more secure pathway forward as the energy infrastructure is brought into operation,” he said.
“At the same time, we will work with Marubeni to develop a long-term partnership that will
extend over the next decade as we open up southeast Australia to international gas supplies
and ensure this piece of critical state infrastructure plays its part in securing some of our future energy needs,” he said.
Also, Winter-Dewhirst added that this is a project that has not required tax payer funding.
The terminal will include the development of two berths in the Outer Harbor channel at Port
Adelaide, along with a floating storage and regasification Unit (FSRU), cryogenic piping, as well as associated infrastructure.
Moreover, Venice Energy expects it would take about 12 months to complete and operate the project over the next 10 years in support of Australia’s transition to a “renewable energy landscape”.
In March this year, the firm said it had expected to take a final investment decision in “the coming months”.
The company signed a heads of agreement with Greece’s GasLog in July last year, under which the latter would supply an FSRU for the project.