LNG

A substantial 13 GW of nuclear capacity built by 2051 is meant to replace coal generation in Australia, if the Liberal National Party (LNP) wins the federal election in early May. The incumbent Labor government targets 82% renewable energy – though short-term grid stability hinges on dispatchable gas power plants, partly fuelled by imported LNG.

Australian company Venice Energy has received approval from the state government of South Australia to construct an import facility in Port Adelaide even as the nation is the World's No. 1 exporter.

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.