Vopak is confident that it can advance Australia LNG import terminal following state overhaul of laws

After laws passed to alleviate supply shortages, Dutch tank storage company Vopak stated on Wednesday that it is confident of advancing the proposed liquefied gas import terminal (LNG) in Victoria, Australia’s largest gas-consuming State.

Why it's important

The Victorian Energy Terminal proposed by Vopak in Port Phillip Bay, is one of four across southeast states that could meet the domestic gas demand. Regulators warn there may be shortages starting as early as 2027.

Environmental concerns and regulatory obstacles have slowed down the progress of these projects.

The reforms of the Victorian government allow companies such as Vopak to secure maritime leases even while the environmental assessment process for the project is in progress, streamlining the approval process. Prior to the reforms, assessments had been required in advance.

CONTEXT

Australia exports more than it consumes but its main reserves are in the north-west, far away from the southeast, where the majority of people live and the demand is greatest.

Vopak's Terminal would allow LNG carriers use a floating-storage regasification unit and supply gas to the existing pipeline system without dredging.

The company has signed an agreement with Hatch Engineering for a front-end design. It will be operational in 2029. Vopak stated that discussions with a FSRU provider were also "well-advanced".

KEY QUOTES

Vopak stated in a press release that the change in legislation would "provide the security it needs for the Crown maritime leasing" and "allow it to undertake its development of the gas import terminal with confidence".

The Vopak Victorian Energy Terminal is a low-impact yet essential solution to securing the gas supply needed to bring greater energy security to Victoria and Australia’s eastern seaboard as they transition to net zero.

This will allow manufacturers to continue producing and innovating while meeting the domestic heating and cooking requirements of the community. (Reporting and editing by Kate Mayberry, Sydney)

(source: Reuters)