AGL Accelerates Plan for first Australian LNG Import Terminal

Victoria, near the city of Melbourne, has been named as the preferred location for what would be Australia’s first LNG import terminal, the company behind the project, AGL, said August 10.

“This doesn’t signal the end of the feasibility studies for the proposed site but now accelerates the process,” AGL executive general manager for wholesale markets, Richard Wrightson, said.

Australia, which is the world’s second largest exporter of LNG, and potentially soon-to-be the largest, has been facing rising domestic gas prices in recent years and concerns of potential shortages in the east coast market in the near future.

The federal government is currently in the process of determining whether it will use new powers to restrict LNG exports in 2018.

Victoria is Australia’s second most populous state, and connected to the east coast market.

“This project will enable access to the world market for gas, injecting some much-needed competition into the Australian market and help ease the tight gas supply,” Wrightson said.

The gas import jetty and pipeline would have the potential, if required, to supply all of Victoria’s households and business customer gas needs, he said.

In a presentation Thursday, AGL listed its A$250mn ($197mn) project as having a 100PJ/yr capacity.

If all goes to plan, Wrightson said, construction will commence in 2019 and the terminal will come into operation by 2020/2021.

Crib Point is the precise location preferred by AGL, which it says is best placed to serve Victoria and take advantage of the existing pipeline network, industrial port facility and associated infrastructure. 

Nathan Richardson