The company behind South Australia’s LNG terminal project, Venice Energy, has agreed to sell its project to LNG terminals and downstream infrastructure company, AG&P LNG, a subsidiary of US-owned Nebula Energy.
This follows an eight-month negotiation process after signing a binding term sheet between the two companies in October last year and a full-formed investment agreement that was settled and signed on Monday, the Australian energy infrastructure developer Venice Energy said in a release.
Kym Winter-Dewhirst, Venice Energy chair, said the agreement means AG&P LNG will provide 100% of project financing and will construct and operate the terminal. A final investment decision (FID) is expected later this year.
“Firstly, the regasification terminal will provide energy security to South Australia from 2028 onwards and secondly help alleviate forecast shortfalls in the gas supply market along the southeast of Australia, said Winter-Dewhirst.
The terminal has already been approved by the South Australia government, and site enabling works were completed earlier this year, according to Venice Energy.
Venice Energy and AG&P LNG have been working together over the past eight months on securing off-take customers through a combination of long term and short to mid term gas sales agreements.
The company is developing an LNG import terminal in Outer Harbor in Port Adelaide, South Australia.
The project includes a floating storage and regasification unit (FSRU) with a minimum storage of around 145,000 cubic metres, two new wharfs, loading arms, cryogenic piping, pumps and associated infrastructure.
