Venice Energy, the developer of a $155 million LNG import facility in South Australia, has signed a project agreement with Flinders Ports.
The deal sets out the framework to support the development of the proposed LNG import project in Port Adelaide, the Australian firm said in a statement.
Additionally, the duo agreed a concept design that will guide the development of two new operating berths but also associated onshore facilities at Outer Harbor, subject to development approval.
Moreover, Venice Energy claims the LNG import facility would enhance the supply of gas to South Australian domestic and industrial users.
Managing Director of Venice Energy, Kym Winter-Dewhirst says the facility will bring
“significant benefits” to the state.
“Importing LNG into South Australia will improve and diversify local gas supplies, especially during peak periods and help to underpin South Australia’s globally leading renewable sector by providing firm dispatchable energy at times when wind and solar are not operating,” he said.
He added that the project would also enable downward pressure on gas prices for all users.
“Our proposed facility is expected to bring around 80 Petajoules per annum of LNG into
South Australia and with supplies forecast to tighten in just a few years’ time, importing LNG makes sense.
“The facility will also be able to support existing gas-powered infrastructure,” he said.
Launch expected by late 2022
Venice Energy recently submitted its development application to the state government for consideration.
If approved, the project would include a two-berth wharf facility to accommodate an LNG carrier, a moored 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.
Subject to various approvals and other milestones set out in the project agreement, Venice Energy expects to launch the facilit by late 2022.
