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Australia secures lease for first floating import ship

Xinhua | Updated: 2018-08-22 11:19
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A view of the Port Kembla in New South Wales, Australia on Dec 5, 2015. [Photo/VCG]

SYDNEY - The details around Australia's first floating liquefied natural gas import ship were finalized on Monday, with Australian Industrial Energy securing a vessel from Norwegian firm Hoegh LNG.

The move comes just months after the state and federal government fast-tracked a $250 million plan to develop an import terminal at Port Kembla, 100 kilometers south of Sydney, in order to shore up the east coast's wavering gas supplies.

"Securing the Floating Storage and Regasification Unit, and confirmation of the New South Wales government's planning requirements are two further important milestones for our project," AIE CEO James Baulderstone said.

"We remain on target to deliver gas to our industrial customers during early 2020 and our schedule coincides with the expected significant tightening of the east coast gas supply market, especially for major industrial users," he said.

The 300-meter-long LNG ship will operate in Port Kembla Harbour and is expected to bring in around 1.8 million metric tons of LNG per year.

"The technologies involved in the FSRU to be docked at Port Kembla will include the latest safety and environmentally sustainable solutions available on the global market," Hoegh LNG CEO Sveinung J.S. Stohle said.

"We are impressed with the AIE consortium's capabilities and its vision to address the gas supply challenges that the Australian east coast market is facing, particularly in NSW," Stohle said.

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