South Korea-based Energy Projects and Infrastructure Korea (EPIK) has signed an agreement with Port of Newcastle to develop an LNG floating storage and regasification unit (FSRU) import terminal.
The potential investment for the Newcastle LNG project is estimated to be between $US400 million ($547 million) and $US430 million.
Newcastle LNG is proposed to include a 170,000 cubic metres new-build FSRU and associated on-shore infrastructure, and potentially a shipyard, which is pending regulatory approvals.
The project is strategically placed within the Port of Newcastle to serve the New South Wales gas market where natural gas prices are higher than Asia.
“Based on our assessment of the New South Wales gas market, particularly along coastal demand regions such as Newcastle and Sydney, we are confident that by importing LNG via a new, low-cost FSRU terminal, we will be able to provide an infrastructure solution that is capable of delivering a cost-efficient source of alternative gas supplies to the region on a long-term basis,” EPIK managing director Jee Yoon said.
The company will also advance its discussions with the Port of Newcastle regarding other potential projects, including a gas-fired power plant and an LNG bunkering facility.
EPIK credited the strategic location of Port of Newcastle as one of Australia’s largest ports and a major trade and logistics hub located at the back-end of the existing gas transmission network.