A SOUTH Korean company has signed an agreement with the Port of Newcastle to establish a new gas import terminal.
EPIK Co. Ltd, a liquefied natural gas floating storage and regasification unit company, announced the commencement of preliminary works on Wednesday.
The project, named Newcastle LNG, will be situated at the back-end of the existing gas transmission network within the Port of Newcastle.
According to EPIK the potential investment for the Newcastle LNG project is estimated to be between US$400 million and US$430 million, which is more than AUD$540 million.
“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,” Jee Yoon, EPIK’s Founder and Managing Director, said.
“We are very excited to be working with Port of Newcastle and hope to expand our relationship by discussing other potential projects, such as a gas-fired power plant and an LNG bunkering facility.”
Port of Newcastle’s executive manager customer and strategic Development, Ian Doherty, said the deepwater port was uniquely placed on Australia’s east coast due to its significant land and channel capacity, making it an attractive location for the Newcastle LNG project.
“This type of development opportunity is consistent with our diversification plans and we’re pleased to be supporting EPIK as it conducts preliminary investigation work, especially given its potential benefits for the NSW economy,” Mr Doherty said.
This will include a 170,000m3 class new-build FSRU and associated on-shore infrastructure. EPIK expects to place an order for the FSRU new-build with a shipyard subject to receiving regulatory approvals for the project.
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