Last week, Australian-based Viva Energy signed commercial agreements with GeelongPort for the construction of a pier and berthing infrastructure for Geelong’s proposed LNG terminal.
The terminal is planned to provide flexible and reliable supply of gas to meet Victoria and South East Australia State’s ongoing energy needs within the backdrop of rapidly declining local gas production and predicted shortages expected to impact consumers over the next few years.
The agreement involves the construction of an extension to the existing refinery pier to provide an additional berth for a permanently moored FSRU, which will be capable of receiving LNG imports.
GeelongPort will construct the extension and license the pier to Viva Energy. In turn, Viva Energy will build the related infrastructure, including a gas pipeline and treatment facility to enable gas to be supplied into the network.
This agreement reflects an important step in approval and development of the Viva Energy gas terminal, and provides a clear pathway to the construction and delivery of the necessary infrastructure underpinning the project, the company explained.
Construction startup remains subject to the satisfaction of certain conditions, including Viva Energy taking a final investment decision (FID) on the project and the Australian Minister for Planning's assessment of the project’s environmental effects under the Environment Effects Act 1978 (Vic) that it will have acceptable environmental outcomes enabling it to proceed.
Viva Energy CEO, Scott Wyatt, said, “Viva Energy has an almost 70-year history of operations in Geelong, is the largest shipper within the Port of Geelong accounting for over 50% of total port volumes, and is an important and longstanding customer of GeelongPort. We look forward to continuing this relationship, and working with the port to complete this important new piece of Victoria’s energy infrastructure.”