AGL Energy is progressing with its plans to build a liquefied natural gas (LNG) import terminal in the southeastern part of Australia to help deal with a potential gas supply shortage in the region.
Australia’s second-largest power and gas retailer said on Friday that the feasibility study for the LNG import terminal was progressing, and the company expects to select the terminal site around the middle of this calendar year.
AGL is developing an import facility despite the fact that Australia is on its way to becoming the world’s largest exporter of the chilled fuel. The country has currently seven operating LNG export developments and three more under construction.
However, shipping of large quantities of domestic gas abroad and moratoriums on onshore gas development are creating supply shortages at home and raising prices as well.
AGL is considering a potential investment of up to $300 million to build a floating or onshore LNG import terminal to supply its retail markets in NSW, Victoria and South Australia.
“Initially, there was a lot of skepticism, but we’re seeing positive support building for this,” AGL chief executive Andy Vesey said in a conference call on Thursday discussing the company’s half year results.
AGL expects to make a final investment decision on the LNG import project by June 2018.
The company previously said that the chilled fuel could be sourced from Europe, the Middle East, Africa, Asia and the United States.
LNG World News Staff