Marubeni eyes South Australia LNG terminal partnership

Japanese trading house Marubeni has signed an initial deal to take an interest in the proposed 440 TJ/d (11.75mn m³/d) LNG import terminal in Adelaide, South Australia.

"Through this agreement Marubeni will bring significant skills and expertise to the project and ensure a more secure pathway forward as the energy infrastructure is brought into operation," said project operator Venice Energy's managing director Kym Winter-Dewhirst.

"At the same time, we will work with Marubeni to develop a long-term partnership that will extend over the next decade as we open up southeast Australia to international gas supplies," he said.

The A$260mn ($179mn) project remains on track to begin ground works in the second half of this year. Venice has indicated the first gas supplies into the state network by 2024, or earlier should offtake demand require it.

The terminal will include the development of two berths in the Outer Harbor at Port Adelaide, along with a floating storage and regasification unit, cryogenic piping and associated infrastructure.

The Adelaide terminal is one of five LNG import facilities proposed for southeast Australia, as the region faces a long-term decline in domestic production that will make it more dependent on gas from onshore coal-bed methane fields in Queensland more than 2,000km away.

By Kevin Morrison