Australian Industrial Energy (AIE) plans to develop a liquefied natural gas (LNG) import terminal at Port Kembla (the Project).
The Project consists of four key components:
LNG carrier vessels – there are hundreds of these vessels in operation worldwide transporting LNG from production facilities to demand centres.
A Floating Storage and Regasification Unit (FSRU) – a vessel moored at a berth in Port Kembla’ inner harbour. There are 29 FSRUs in operation around the world and a further 75 in the planning stage.
Wharf facilities – offloading arms to transfer the LNG from the carrier into the FSRU
Pipeline – a standard high pressure pipeline connection from the FSRU to existing east coast gas transportation network
The import facility will allow carriers transporting LNG gas to berth adjacent to the FSRU. The LNG carriers’ liquid cargo will then be transferred to the FSRU where it will be stored. This transfer process does not occur under pressure, which ensures the liquid natural gas remains non-explosive and non-flammable.
When needed, the liquefied natural gas will be warmed on board the FSRU, converting it back into a gas.
The gas will then be transferred, via a new pipeline, from the FSRU berth to the main east coast natural gas transmission network, connecting the Project to its customer base.
Development Consent for the Project was granted by the New South Wales Government in April 2019.
Greater than anticipated customer demand for natural gas has now led AIE to seek a modification to that Consent in order to increase the capacity of the Terminal. This would be achieved by increasing the number of LNG carriers arriving at the Terminal annually.
A Final Investment Decision on the Project is expected in 2020.
Construction will then take around 14-16 months and consist largely of modifications to the existing Berth 101, where the FSRU will be moored for the duration of the Project, and the construction of the natural gas pipeline connecting the Terminal to gas transmission infrastructure.