AGL Energy is considering building an LNG import terminal in the southeastern part of Australia despite the fact that the country is on its way to becoming the world’s largest exporter of the chilled fuel.
AGL revealed on Monday a A$17 million ($12.8 million) study on constructing the LNG import facility targeting a final investment decision in 2018-19.
Australian energy company has identified a number of sites and estimates the potential development would cost between A$200 million and A$300 million, according to slides prepared for AGL’s investor day on Monday.
The chilled fuel could be sourced from Europe, the Middle East, Africa, Asia and the United States. The LNG import project could be ready by 2021, the slides showed.
Australia has currently seven operating LNG export developments and three more under construction. However, shipping of large quantities of domestic gas abroad and moratoriums on onshore gas development are creating supply shortages at home and raising prices as well.
This is also not the first time that an LNG import project is being mentioned as an option in Australia in the wake of the LNG export boom.
Earlier this year, Andrew Smith, Chairman of Shell Australia said that New South Wales and Victoria may have to consider importing LNG due to the looming gas shortage in the two states located in the southeastern part of the country.
According to Smith, importing LNG to Sydney could be an option if governments in Victoria and New South Wales persist with “moratoriums that stifle the development of additional reserves“.
“If we choose not to act on declining gas fields, the idea of constructing a re-gas terminal in Port Botany may fast become a viable alternative for the industry,” he said in June.
LNG World News Staff