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    South Korea's EPIK Plans Oz FSRU Project

Summary

The project, named Newcastle LNG, will be sited within the Port of Newcastle, and will serve the New South Wales gas market.

by: Shardul Sharma

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Natural Gas & LNG News, Asia/Oceania, Security of Supply, Corporate, Import/Export, Investments, Contracts and tenders, Liquefied Natural Gas (LNG), Infrastructure, News By Country, Australia

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South Korea's EPIK Plans Oz FSRU Project

South Korea-based Epik December 4 said it has entered into an agreement with Port of Newcastle, Australia to commence preliminary works on a proposed LNG floating storage and regasification unit (FSRU) project.

The project, named Newcastle LNG, will be sited within the Port of Newcastle, and will serve the New South Wales gas market, it said. 

“Based on our assessment of the New South Wales (NSW) gas market, particularly along coastal demand regions such as Newcastle and Sydney, we are confident that by importing LNG via a new, low cost FSRU terminal, we will be able to provide an infrastructure solution that is capable of delivering a cost-efficient source of alternative gas supplies to the region on a long-term basis,” Jee Yoon, Epik’s managing director, said.

“We are very excited to be working with Port of Newcastle and hope to expand our relationship by discussing other potential projects, such as a gas-fired power plant and an LNG bunkering facility,” Yoon added.

Port of Newcastle’s executive manager customer and strategic development, Ian Doherty, said the deepwater port was uniquely placed on Australia’s east coast due to its significant land and channel capacity, making it an attractive location for the Newcastle LNG project. “This type of development opportunity is consistent with our diversification plans and we’re pleased to be supporting EPIK as it conducts preliminary investigation work, especially given its potential benefits for the NSW economy,” Doherty said.

The potential investment for the Newcastle LNG project is estimated to be between US$400mn and US$430mn, which will include a 170,000 m3 class new-build FSRU and associated on-shore infrastructure. EPIK expects to place an order for the FSRU new-build with a shipyard subject to receiving regulatory approvals for the project.

With a gas shortage expected in the Australian east coast markets, four other companies have proposed LNG import facilities on the east coast: AGL, ExxonMobil, Mitsubishi and Squadron Energy. 

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