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AIE signs charter deal for Port Kembla

Höegh LNG to supply FRSU to AIE

Andrew Forrest’s Port Kembla LNG import venture Australian Industrial Energy (AIE) has signed a long-term charterparty agreement with infrastructure and transport provider Höegh LNG. 

Höegh will supply the first floating storage and regasification unit (FSRU) to operate at AIE’s Port Kembla  energy terminal, which is expected to be up and running by mid-2023. 

The Port Kembla energy import terminal will deliver a new source of energy to the east market and is predicted to meet supply shortfalls forecast for New South Wales and Victoria. 

Höegh LNG’s fleet of FSRUs will be used to receive, store and regasify natural gas at the terminal when operations begin.

According to AIE, the port could supply more than 75 per cent of NSW’s gas needs once operational

In addition to serving the terminal, Höegh LNG has agreed to collaborate with AIE on the future design and development of a new generation FSRU, capable of receiving clean fuels to be used as part of future green energy supply chains.   

Initial feasibility studies on the new FSRU are to begin immediately.

According to AIE, while the final design is yet to be confirmed, the vessel is expected to have the capability of delivering both natural gas and green hydrogen, unlocking further opportunities for Port Kembla to support a future hydrogen industry in the country. 

AIE chairman Andrew Hagger said the agreement with Höegh supports the company’s vision to actively resolve the energy crisis on the east coast and accelerate the use of future fuels. 

“With the phasing down of Australia’s fossil fuel industry already underway, the terminal will be critical to ensuring hundreds of thousands of Australian businesses and households avoid supply shortfalls from 2023 onwards,” Hagger said.

“Now that critical infrastructure agreements and approvals are in place for the terminal, we look to NSW and Victorian natural gas retailers to now take active steps to help resolve the energy security crisis they have warned about.”

Höegh LNG chief development officer Richard Tyrrell said the company was excited by the prospect of supporting Australia’s first natural gas import terminal. 

“We share AIE’s clean energy vision and look forward to working together on the next generation capabilities that will ensure that the Port Kembla Energy Terminal remains at the forefront of the energy transition,” Tyrrell said.

The NSW Government granted development consent for the Port Kembla project back in April 2019. 

Construction began earlier this year, and the facility is expected to begin supplying the market from 2023. 

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