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Reuters
30-05-2025
- Business
- Reuters
Vopak in talks with partners for Australia LNG import project
SINGAPORE, May 30 (Reuters) - Vopak ( opens new tab has started talks with gas suppliers and offtakers for its liquefied natural gas import terminal project in Victoria, Australia, and expects to take a final investment decision in 2026-2027, a senior executive told Reuters. The global energy storage operator announced last week it was confident in advancing the project in Australia's biggest gas-consuming state after laws were passed to ease supply shortfalls. Paul Kanters, managing director of Vopak Terminals Australia, said operations could begin as soon as 2029 if all the necessary environmental permits and commercial contracts are in place in 2026-2027. Vopak's Victorian Energy Terminal in Port Phillip Bay is one of four proposed across Australia's southeastern states to meet domestic gas needs, as regulators warn there could be shortages as soon as 2027. The global energy storage operator plans to charter a floating storage regasification unit (FSRU) to act as an import terminal to supply gas to the state of Victoria. While Vopak is seeking an FSRU with a capacity of 170,000 cubic metres, it has been "extremely difficult" to secure one after the Russia-Ukraine war drove Europe to secure more floating terminals to import more LNG, Kanters said. "We are in final talks with a FSRU provider to have an FSRU designated for this project," he said. The company aims to start operations at the terminal in 2029 when there will be a structural gas shortage, and would run for at least 10 years, Kanters said. "The Victoria market is somewhat difficult, but sometimes because it's a peak market, you need to build infrastructure to allow for accommodating peak demand," he added. Using an FSRU also provides flexibility for operators to react to Australia's gas needs which may decline if electrification of its economy gathers speed, Kanters said. "The FSRU can simply float away and will not leave any legacy infrastructure sitting there for tens of years that needs to find a home or needs to be depreciated," he added. Australia was the world's second-largest LNG exporter last year after the U.S., shipping over 81 million metric tons of the chilled fuel, according to Kpler data. Its major reserves however are mostly in the northwest, far from the southeast where most people live.
Reuters
21-05-2025
- Business
- Reuters
Vopak says it is confident in advancing Australia LNG import terminal after state overhauls laws
SYDNEY, May 21 (Reuters) - Dutch tank storage firm Vopak ( opens new tab said on Wednesday it was confident in advancing its proposed liquefied natural gas (LNG) import terminal in Victoria, Australia's biggest gas-consuming state, after laws were passed to ease supply shortfalls. Vopak's Victorian Energy Terminal in Port Phillip Bay is one of four proposed across the southeast states to meet domestic gas needs, as regulators warn there could be shortages as soon as 2027. The projects have progressed slowly due to environmental concerns and regulatory hurdles. Under the Victorian state government's reforms, companies like Vopak can secure maritime leases while the project's environmental assessment process is underway, streamlining approvals. Previously, the assessments had to be concluded beforehand. Australia exports more gas than it consumes, but its major reserves are located mostly in the northwest, far from the southeast where most people live and demand is highest. Vopak's terminal would allow LNG carriers to use a floating storage regasification unit (FSRU) and supply gas into the current pipeline system without dredging. It is scheduled to be operational by 2029, after the company signed a front-end engineering design agreement with Hatch Engineering. Discussions with an FSRU provider are also 'well advanced', Vopak said. Vopak said in a statement the legislative change would 'provide security for the Crown maritime lease' it needed and allow it to 'undertake its development in the gas import terminal project with confidence'. 'The Vopak Victorian Energy Terminal offers a low impact yet essential solution for securing gas supply necessary to bring greater energy certainty to Victoria and Australia's eastern seaboard during the transition to net-zero.' 'This will ensure that manufacturers can continue to produce and innovate while the community's domestic heating and cooking needs are met.'
