Squadron Energy says Australia’s first LNG import terminal complete

According to Squadron Energy, commissioning of the onshore receiving facility is now underway, which ensures the functionality of all equipment at the import terminal including the control system, marine loading arms, and fire system.

Located on Dharawal land, in Port Kembla’s Inner Harbour,l has the capacity to supply 500TJ a day – enough to meet all of NSW’s gas needs on a peak day or half of Victoria’s peak day demand, the company said.

Squadron Energy executive general manager, operations Stuart Davis said completing construction on PKET was a “significant milestone.”

He said PKET is the only solution capable of resolving Australia’s looming domestic gas shortage by guaranteeing supply.

“The terminal is now getting ready to support domestic gas supply, without the need for new gas fields in Australia, which will be critical as we transition to renewable energy,” Davis said.

Squadron Energy did not mention Hoegh Evi’s 2019-built FSRU Hoegh Galleon or when it expects to launch the project.

It previously said that it expects to launch the Port Kembla facility in winter 2025/2026.

Hoegh Galleon is currently located in Egypt, and it is serving a charter deal with Egypt’s EGAS.

Hoegh Evi’s team, led by CEO Erik Nyheim, visited the Port Kembla facility earlier this year.

Back in 2022, Hoergh Evi, previously known as Hoegh LNG, and Squadron Energy’s Australian Industrial Energy (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 2023 that the FSRU had started its charter with AIE. After that, it agreed with AIE to charter the unit to EGAS.

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.