Viva adds partners to Geelong LNG import terminal plan

Australian refiner and marketer Viva Energy today said it has initial agreements with two consortiums over the development of an LNG import terminal next to its 128,000 b/d Geelong refinery in Victoria. Viva plans to make a final investment decision (FID) on the project by the middle of 2022 and have first gas delivered in 2024.

The agreements are with a consortium of Japanese trading house Mitsui and French energy firm Engie and the second is with Viva's major shareholder trading firm Vitol and its 45pc owned storage terminal owner and operator VTTI, Viva said. Abu Dhabi state-owned energy firm Adnoc owns 10pc of VTTI while Australian investment firm IFM Global Infrastructure Fund owns 45pc.

The partners bring significant operational and project expertise in similar LNG regasification terminals, and experience in the Australian gas and electricity markets, Viva said. Engie operates the 479MW Pelican Point gas-fired power station in South Australia. A separate LNG import terminal project proposed by Australian private-sector company Venice Energy plans to build an import facility beside Pelican Point.

The Geelong LNG import terminal will have access to international markets and will also be able to source from Australian LNG producers, Viva said. Binding commitments over capacity ownership in the proposed Geelong import terminal and offtake from the terminal, are not covered by the MOU and will be sought at the time of an FID to proceed, it said.

Viva has also approved funding for initial engineering for the project and started a tender process for the construction of the floating storage regasification unit.

The Geelong LNG import terminal project is one of three proposed projects in the state of Victoria where ExxonMobil and Australian utility and gas firm AGL Energy also have proposals. Another two LNG import terminals are planned for New South Wales while the Venice Energy proposal is the only one planned in South Australia.

By Kevin Morrison