Suppliers Sought for Australia’s 1st LNG Import Terminal
Leading Australian energy retailer AGL is issuing a Request for Proposal (RFP) from LNG suppliers to supply gas to eastern Australia through the company’s proposed LNG import project at Crib Point, Western Port, Victoria, a spokesman for AGL said via email November 21.
The project, which would be Australia’s first LNG import terminal, is aimed at putting downward pressure on prices in the region, which has faced warnings that it could experience gas shortages in the coming years.
“The most effective way to put downward pressure on prices is to increase supply and that is what AGL is proposing. This project will enable access to the world market for gas, injecting much-needed competition into the Australian market and helping to ease market pressures,” AGL executive general manager Richard Wrightson said.
The company confirmed Crip Point as its preferred location for the project in August this year.
“Subsequently, LNG suppliers were invited to participate in an Expressions of Interest (EOI) process that received an overwhelming response,” the spokesman said. “The issuance of the RFP marks the next stage in the process for the project and confirms AGL’s strong desire to ensure its customers have access to sufficient supply of gas,” he said.
In a report by The Australian Financial Review November 19, it said, without naming sources, that the tender is understood to be for 1mn metric tons/year, or about 50 petajoules/year, and is expected to be concluded in early 2018.
AGL was not available for immediate comment on the size or timing of the tender. In August, it said it expected Crib Point to be a 100 PJ (2.67bn m3) per year project and, if all went to plan, have construction commence in 2019 with the terminal coming into operation by 2020/2021.