Japanese duo exit Australian Port Kembla FSRU project

Japan’s JERA and Marubeni have sold their stakes in the Port Kembla FSRU project to Australia’s Squadron Energy, which will now continue to develop the import facility solo.

To remind, Australian businessman Andrew Forrest’s Squadron Energy, Japanese trading house Marubeni and LNG trading giant JERA formed the import project developer Australian Industrial Energy back in 2018.

Under the new arrangement, Squadron has acquired JERA’s 19.9% and Marubeni’s 30.1% interest in the project. Following the new deal, Squadron gains full ownership and operatorship of AIE.

Squadron Energy Chairman Michael Masterman said AIE will now focus on accelerating the project’s development.

“JERA and Marubeni have both indicated they remain open to future opportunities for targeted involvement in the project,” he said.

This includes LNG procurement, and the development of an associated gas-fired power station, Masterman said.

FID yet to be taken

The Port Kembla facility in New South Wales is one of the proposed LNG import projects aiming to bring natural gas to southeast Australia to fill in the looming shortage.

AIE previously appointed construction contractor, Spiecapag Soletanche Bachy. Additionally, the firm also secured the Hoegh Galleon as the project’s FSRU.

The Port Kembla terminal will have the capacity to deliver over 100 petajoules of natural gas each year. This represents about 75 percent of NSW total market needs, according to AIE.

It could source LNG supplies from Western Australia, Queensland or anywhere else in the world.

Furthermore, AIE plans to reach a FID in the next few months and start importing LNG by 2022.

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