New Australian LNG FSRU import terminal

Port of Newcastle, Australia Potential investment for the ‘Newcastle LNG’ project is estimated to be between US$400m and US$430m. Credit: Port of Newcastle

EPIK Co. Ltd. will commence preliminary works on a proposed LNG floating storage and regasification unit (FSRU) import terminal at the Port of Newcastle, Australia.

The potential investment for the ‘Newcastle LNG’ project is estimated to be between US$400m and US$430m, which will include a 170,000m3 class new-build FSRU and associated on-shore infrastructure. South Korea-based EPIK expects to place an order for the FSRU new-build with a shipyard subject to receiving regulatory approvals for the project, which will be designed to serve the New South Wales gas market, where natural gas prices remain higher than Asian LNG prices.

Jee Yoon, founder and managing director of LNG FSRU project development company EPIK, said: “Based on our assessment of the New South Wales 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.”

More projects ahead?

Mr Yoon added that EPIK hoped to work with the Port of Newcastle on other potential projects including a gas-fired power plant and an LNG bunkering facility.

Port of Newcastle’s executive manager customer & strategic development, Ian Doherty, said the deepwater port, situated at the back-end of the existing gas transmission network, 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, which fits the port’s diversification plans.

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