LNG

Australia is on track for record LNG shipments to remain the world’s largest exporting country, ahead of Qatar and the US, even in a year when two plants suffered long shutdowns and economies worldwide were slowed by the Covid-19 pandemic.

Australian utility AGL Energy is progressing with the LNG import terminal and has submitted for public comment its environmental impact statement for the facility at Crib Point on Westernport Bay, south of Melbourne in the state of Victoria.

The AGL environmental statement will be open for public comment until the 26th of August 2020.

Subject to clearance, AGL hopes to make a final investment decision on the Crib Point project around the end of this year.

A second LNG project aimed at bringing in more natural gas to another area of the nation threatened with gas supply shortages in the southeast is being developed by Australian Industrial Energy (AIE) in the state of New South Wales at Port Kembla, south of Sydney.

That project is backed by the world’s largest LNG purchaser, JERA Co. Inc. of Japan, the Japanese trading house Marubeni Corp and Australian mining billionaire Andrew Forrest’s Squadron Energy.

The Crib Point project in in Victoria has a price tag of A$300 million (US$208M) and involves a floating terminal moored at a newly constructed jetty for LNG carriers making deliveries.

The venture also includes a 55-kilometres natural gas pipeline to the Melbourne satellite town of Pakenham to connect to the Victorian gas grid.

AGL said construction could begin in 2021 and the project brought on stream by 2023, in time to help meet the shortfall of gas supply forecast for Australia’s southeast market.

The project faces opposition from environmental groups as well as residents concerned about potential risks to the Westernport region’s tourism.

The Crib Point proposal requires approval from both the Victorian state government and the federal government in Canberra.

The AGL plan is one of two similar projects proposed in Victoria following Viva Energy’s announcement in June 2020 of its ambitions to transform the site of its Geelong oil refinery into an energy hub that would include an LNG import capability.

AGL is based in Sydney and is one of the nation’s main utilities, offering electricity and gas services in NSW, Victoria, Queensland and South Australia.

It is also investing in renewables, peak-shaving and storage and has other major projects across Australia in addition to the LNG terminal.

AGL’ submission of its environmental report has coincided with a statement from AGL Chief Executive Brett Redman to his customers offering carbon-neutral energy and pledging the company’s commitment to the transition but at a logical pace that will keep the lights on.

“As Australia’s largest and oldest integrated electricity generator and retailer, we play a vital role in Australia’s energy market and the wider transition,” said Redman.

“Not only do our coal and gas fired generators ensure Australia’s lights remain on, they provide the financial strength for AGL to progress the transition,” he added.

“I am proud of the role our employees at all of our generation sites play, particularly as demonstrated during the recent crisis,” he stated.

“What the crisis has reinforced for us is that we need to continue to embrace change, innovate and move with speed in order to evolve as an organisation, drive transformation in our industry and provide the community with the type of essential service they need,” explained Redman.

“Many of our customers share our interest in shaping a more sustainable future. So, it’s important to provide them with options and that’s what our new carbon neutral product does - regardless of whether they are a family, a small business or a large commercial or industrial customer,” he said.

“To support this new product into the future AGL has embedded changes in our policies, supply chain and systems to ensure a carbon neutral option is offered every time a customer chooses an AGL electricity, gas or telecommunications product,” added Redman.

“We accept the science of climate change. The more difficult aspect that needs to be addressed is how we manage the transition in a way that reduces emissions and supports our customers and the community," said the CEO.

“I believe that Australia and Australians have the capability and the capacity to achieve transition in our energy market in a way that drives us forward, unlocks the potential of new technology and creates new industries and opportunities,” he concluded.