Jemena to start building pipeline to connect Port Kembla LNG import terminal

Jemena is about to start building a lateral pipeline to connect Squadron Energy’s FSRU-based Port Kembla LNG import terminal in New South Wales to the Eastern Gas Pipeline.

In March last year, Jemena and Australian Industrial Energy (AIE), a unit of Squadron Energy, signed a deal for the pipeline.

The pipeline firm said in a statement this week it is partnering with engineering and construction firms Zinfra, Nacap, and Wasco to connect Australia’s first LNG import terminal at Port Kembla to the EGP.

According to Jemena, the appointment would see the partners build a 12km underground pipeline which would transport up to 130 petajoules of gas annually from Squadron Energy’s Port Kembla Energy Terminal (PKET) to customers in NSW and Victoria.

Once commissioned the pipeline would be able to transport enough gas to meet more than 75 percent of NSW’s current gas needs, Jemena claims.

Under the deal, Zinfra will provide overarching project management and engineering services for the project, Nacap will construct the pipeline itself while Wasco will deliver the Kembla Grange Metering Station, where this pipeline connects to the EGP.

Jemena did not provide any additional information such as the price of the deal and the timeline of the project.

The firm plans to duplicate the existing Port Kembla lateral pipeline, which forms part of the EGP.

Hoegh LNG FSRU

Andrew Forrest’s Squadron Energy said in August this year that the terminal’s wharf infrastructure was 80 percent complete and that the firm expected the terminal to become operational at the end of 2023.

Earlier this year, Hoegh LNG said that AIE had confirmed a long-term FSRU charter deal for its Port Kembla import terminal.

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.

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