Australian energy infrastructure developer Venice Energy has decided to take on a different supplier of a floating storage and regasification unit (FSRU) for the Outer Harbor LNG Project in Adelaide.
In mid-2022, Venice signed an FSRU time charter party agreement with Greek shipping company GasLog. However, GasLog underwent a major restructuring last year, with one of the major highlights being the merger with its affiliate GasLog Partners. According to the Australian company, several vessels were sold off after the restructuring.
Venice Energy was able to find new strategic partners in the form of AG&P LNG and GAS Entec. The two companies will take GasLog’s place and provide the fully converted FSRU for the Outer Harbor Project.
“We had some good discussions with them over the last two months and we have secured a new commercial understanding that guarantees that the project will receive a converted FSRU at an improved cost and on time,” Venice Energy explained in a recent update.
AG&P is a global player in LNG terminal development while GAS Entec is a South Korean FSRU conversion firm which previously completed three LNG carrier to FSRU conversions. The Outer Harbour project FSRU will be fully converted by GAS Entec in a South Korean shipyard and will have a capacity of around 146,000 cu m.
Venice Energy received government project approvals for the project in December 2021. Up to 110 petajoules of gas will flow through the terminal annually or 386 terajoules daily.
Enabling works on stage one of the project began in November 2023 while the terminal construction will last around 24 months. First gas is expected to flow into the network in May 2026.
