Venice Energy expects to take a final investment decision to build its FSRU-based LNG import project in the Port of Adelaide, South Australia, by early October, according to the company’s managing director, Kym Winter-Dewhirst.
Earlier this year, Venice Energy estimated it could reach FID on the proposed LNG terminal in the Outer Harbor by the end of August.
Winter-Dewhirst told LNG Prime on Tuesday that the project team “has made significant progress towards that goal but at this stage we now believe FID will more likely be reached by the end of September or early October.”
“If we achieve this major milestone we will begin site enabling works, as the first stage of the project, by November. This will be the start of a 24 month construction phase that will see the FSRU with a first cargo of LNG arrive in Adelaide by December 2025,” he said.
Winter-Dewhirst added that the company is in the “final stages of customer negotiations and expects this phase to be settled very soon to then allow us to move to FID, followed by commercial close.”
GasLog to convert LNG carrier to FSRU
Last year, Japanese trading and investment house, Marubeni, has signed a memorandum of understanding with Venice Energy to join the latter’s FSRU-based LNG import project.
Venice Energy said at that time that as part of the deal with Marubeni it would create a joint venture partnership for its A$260 million ($166 million) project under development in South Australia.
The terminal will include the development of two berths in the Outer Harbor channel, along with the FSRU, cryogenic piping, as well as associated infrastructure.
Venice Energy claims the LNG terminal will be the first in the world to operate exclusively on renewable energy.
The company signed a heads of agreement with Greece’s GasLog in July 2021, under which the latter would supply an FSRU for the project.
In January this year, Paolo Enoizi, CEO of Greek LNG shipping firm GasLog said that company has agreed in principle to convert one of its 145,000-cbm steam LNG carriers to an FSRU and charter it to Venice Energy.
“Such conversion is expected to cost in excess of $100 million and take between eight to 10 months,” Enoizi said.