LNG

Höegh LNG Ltd, the owner and operator of 13 LNG vessels including floating storage and regasification (FSRU) units, said it was focusing ensuring that FSRU projects commence operations as planned for customers in Germany, France and Brazil over the coming months as it posted increased profits.

One of Australia’s leading energy market regulators has said that the events in Ukraine had pushed global energy markets further into the unknown and that gas supply problems for Europe could get much worse and LNG exporter Australia is also on course for severe gas shortages.

Höegh LNG Holdings, the Norwegian shipping company acquired in a takeover by Norwegian interests and a unit of US investment bank Morgan Stanley, posted a wider loss in the first quarter of 2021 as it reported setbacks in its tenders for projects.

Australian LNG shipments to North Asia from the world's largest exporter hit record levels for some nations in March and revenues increased from the previous month, led by Chinese demand for cargoes.

Australia's AGL Energy has pushed its case for regulatory approval for its liquefied natural gas import project at Crib Point in southeast Australian in the largest ever environmental assessment inquiry held in the state of Victoria.

Venice Energy, the group planning a project to import LNG into South Australia, said it signed a project agreement with Flinders Ports that sets out the framework to support the development of the floating facility in Port Adelaide.

A concept design has been agreed by both companies that would guide the development of two new operating berths as well as associated onshore facilities at Outer Harbor, subject to development approval.

Venice Energy said its LNG import facility would enhance the supply of gas to South Australian domestic and industrial users.

Managing Director of Venice Energy, Kym Winter-Dewhirst, said the terminal would bring significant benefits to the state.

“Importing LNG into South Australia will improve and diversify local gas supplies, especially during peak periods and help to underpin South Australia’s globally leading renewables sector by providing firm despatchable energy at times when wind and solar are not operating,” explained Winter-Dewhirst.

“It will also increase the State’s energy security and enable downward pressure on gas prices for all users,” he added.

“Our proposed facility is expected to bring around 80 petajoules per annum (2.14 billion cubic metres) of natural gas into South Australia and with supplies forecast to tighten in just a few years’ time, importing LNG makes sense,” he stated.

The proposed facility would be located adjacent to the Pelican Point gas fired power station next to the already productive Flinders Ports quay line.

Subject to various approvals and other issues set out in the project agreement with Flinders Ports, the facility is expected to be operational by 2022.

At least two other Australian LNG import projects are progressing, including one by billionaire businessman Andrew Forrest's Squadron Energy in New South Wales at Port Kembla, south of Sydney.

A second Australian LNG import project is proposed at Crib Point at the Port of Hastings in the state of Victoria by AGL Energy.

Australia, while being the world's largest LNG exporter, is moving to LNG imports in southeast Australia because of natural gas shortages for industrial and domestic retail supplies.

Australian billionaire Andrew Forrest's Squadron Energy has bought Japanese investors out of the Australian Industrial Energy joint venture formed to develop an LNG import project in New South Wales at Port Kembla, south of Sydney, and will speed ahead on its own.

AGL Energy of Australia has pledged at the annual meeting to pursue the Crib Point LNG project on Westernport Bay, south of Melbourne in the state of Victoria as one of the vital tools in the cleaner energy transition.

Australian company Cooper Energy and Japanese trading house and LNG buyer, the Mitsui Group, said they planned to invest in buying and upgrading the idle Minerva Gas Plant in the state of Victoria to boost offshore natural gas supplies in southeast Australia.

Copper said both companies would make a joint commitment of A$55 million (US$384Mlb) to support increased and new domestic gas supply for the region.

The companies said A$37M would be spent on upgrading the plant, A$17.8M on purchasing it and on engineering and maintenance.

“This investment decision represents an important milestone in Cooper Energy’s continuing growth as a safe, competitive, efficient and reliable developer and marketer of new gas supplies for homes and businesses in southeast Australia,” said Cooper Energy Managing Director David Maxwell.

The infrastructure works at the Minerva Gas Plant will enable the supply of 16 petajoules of currently undeveloped gas.

Maxwell said this was an important commitment to infrastructure investment, local jobs and increased domestic gas supply.

“This is a ‘shovel-ready project’ which will see Cooper Energy and Mitsui Group upgrade the idle Minerva Gas Plant to be a processing hub for local production and discoveries in the offshore Otway Basin in Victoria,” explained Maxwell.

The Minerva Gas Plant is located near Port Campbell in Victoria and will be renamed the Athena Gas Plant in recognition of the expansion of its role in processing new supplies from the Otway gas fields.

“It means local jobs for local contractors which will help deliver reliable gas supplies into the East Coast market,” he stated.

“The investment follows the successful exploration program by Cooper Energy and Mitsui Group resulting in the Annie-1 gas discovery, in the Otway Basin, the first offshore discovery in southeast Australia over seven years,” added Maxwell.

The Cooper-Mitsui investment comes as two LNG import projects advance in southeast Australia to alleviate natural gas shortages.

Australian utility AGL Energy is progressing with its LNG import terminal project at Crib Point on Westernport Bay, south of the Victoria state capital Melbourne.

AGL said recently its environmental statement would be open for public comment until 26th of August 2020.

Subject to clearance, AGL hopes to make a final investment decision on the Crib Point project around the end of 2020.

A second LNG project aimed at ending gas shortages 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 Minerva Gas plant project proposes to draw gas from four offshore wells (Casino-4, Casino-5, Henry-2, and Netherby-1) into the onshore plant via a pipeline tie-in and minor modifications.

“This will improve recovery enabled by lower plant inlet pressure and provide the ability to offer customers firm supply,” Cooper Energy explained.

“Following the completion and performance testing, first gas is expected to be delivered to the Minerva plant within the September quarter 202. This expectation incorporates allowances for uncertainty from Covid-19 as it is presently understood,” the company statement concluded.

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.