The owner of the Golden Beach gas and storage project, located in Victoria state's offshore Gippsland basin has been placed into voluntary administration in a blow to the 19PJ (507mn m³) development's future.
Golden Beach Energy was impacted by delays to project's timetable and a significant escalation in costs, Australian utility and offtake partner Origin Energy said on 6 November, leaving the developer without sufficient funding to reach a final investment decision.
Origin is a secured creditor of Golden Beach Energy and has appointed FTI Consulting as receivers and managers to work with administrator McGrathNicol and other stakeholders to determine appropriate next steps, a spokeswoman for Origin said, including potential avenues for additional funding.
Golden Beach had received Victorian government approvals for a production licence late last month in a boost to the facility, after co-owner of the 9mn t/yr Australia Pacific LNG project Origin spent a further A$25mn ($17.5mn) on the development earlier this year.
Gas storage was planned from 2029 onwards with the facility, about 220km east of state capital Melbourne, touted as able to inject 500 TJ/d to the grid at times of high heating demand in the winter.
Australia's south is expected to experience peak-day gas shortfalls from 2029, with new pipelines to bring gas south from Queensland state, LNG import terminals, new field development and storage nearby major demand centres such as Melbourne all mooted as solutions.
Despite rapidly depleting reserves in Victoria's Gippsland basin — the major supplier of locally needed domestic gas — demand has this year plummeted due to factors including warmer weather and higher coal-fired and renewable electricity reliability. Uncertainty surrounds the timeline for shortages, with forecasters having repeatedly pushed back the year in which shortages are expected to occur.
The Australian government is planning to mandate LNG projects reserve more gas for domestic use under new laws introduced to parliament, which has added to doubts about supply levels. But final detail of the laws are likely to hinge on amendments agreed in the nation's senate.
