Singaporean firm Atlantic Gulf & Pacific (AG&P), the developer of the proposed 2mn t/yr Outer Harbor LNG import terminal in South Australia (SA), has signed a memorandum of understanding (MoU) with an unnamed Australian energy company to explore power generation using imported gas.
The MoU aims to create joint development opportunities and could lead to the partner company becoming a significant offtaker from Outer Harbor for gas to power its existing assets, AG&P said on 13 August.
AG&P completed its purchase of Australian LNG import terminal developer Venice Energy on 11 August, with plans for a final investment decision on the Outer Harbor project near SA capital Adelaide later this year.
Southern Australia, including the states of SA, Victoria, New South Wales (NSW) and Tasmania, are forecast to experience gas shortfalls, especially during winter months, from 2028 onwards.
Outer Harbor could help mitigate this shortage by replenishing the 24PJ Iona storage facility in Victoria during winter. And a new 600m pipeline and additional compression of the SEA gas pipeline could enable AG&P to supply 250 TJ/d or more to the storage as required, the firm said.
The 314 TJ/d SEA pipeline is a 687km link from Iona gas plant near Port Campbell in Victoria to the 497MW Pelican Point gas-fired power station at Port Adelaide, nearby Outer Harbor. The SEA pipeline currently provides about 50pc of Adelaide's gas demand, operator APA says.
Australia has four import terminals planning to bring gas into the country later this decade, when depletion at Victoria state's gas fields will lead to predicted shortages. Australian refiner Viva Energy's Geelong LNG import terminal near Melbourne is also planning to supply the state of Victoria later this decade, while privately owned developer Squadron Energy is planning to import LNG at Port Kembla in NSW from 2027.
Dutch storage firm Vopak is planning the fourth such facility at Port Phillip Bay nearby Melbourne.
