Venice Energy selects FSRU provider for South Australian LNG import project

Venice Energy said it has selected an unidentified owner to supply an FSRU for its $155 million LNG import facility in the Port of Adelaide, South Australia.

The company launched its FSRU tender in December last year and received offers of
participation from six of the “world’s leading FSRU/LNG shipping companies,” Venice Energy said in a statement.

Managing Director of Venice Energy, Kym Winter-Dewhirst, said a final assessment by the
project team revealed two companies with “highly competitive offers.”

“We have signed the heads of agreement and term sheet with a leading global
independent LNG shipowner and operator from Europe and we are beginning negotiations
on the fully formed time charter party agreement which is expected to be concluded in the
coming weeks,” he said.

Winter-Dewhirst did not reveal the name of the firm.

Venice Energy eyes FID this year

“The FSRU represents the major proportion of our operational expenditure, so having it
locked in at this stage of the project is critical to our development and provides us with
certainty as we push ahead with our final round of project approvals this year,” he said.

Following approvals, Venice Energy plans to reach a final investment decision towards the back half of the year and break ground shortly thereafter.

“With the recent announcement by both the federal and state governments of a $1bn energy fund for South Australia and the Prime Minister’s call for an additional 50-80 petajoules per annum of gas into the state, Venice Energy is well placed to meet these targets,” Winter-Dewhirst said.

To remind, Venice Energy has last year signed a project agreement with Flinders Ports.

The Outer Harbor project includes a two-berth wharf facility to accommodate an LNG carrier, the FSRU and supporting infrastructure.

Furthermore, the proposed facility would be located adjacent to the Pelican Point gas fired power station next to the already productive Flinders Ports quay line.

Venice Energy previously said it aims to launch the project in 2022.

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