AGL Energy, Australia’s second-largest power and gas retailer, picked Crib Point in Victoria as the preferred site for a liquefied natural gas (LNG) import terminal.
According to its statement on Thursday, Crib Point (Western Port) is best placed to serve Victoria, Australia’s largest gas market, as well as take advantage of the existing pipeline network, industrial port facility and associated infrastructure.
AGL is developing an import facility despite the fact that Australia is one of the world’s largest exporters of the chilled fuel.
Richard Wrightson , AGL executive general manager, wholesale markets, said the decision will accelerate the feasibility studies process.
“If all goes to plan, AGL would invest roughly $250 million, commence construction in 2019 and bring the terminal into operation by 2020/21,” Wrightson said, adding the project would enable access to the world LNG market.
The company expects the project, named Crib Point LNG to increase the security of gas supply to Australian east coast, increasing competition and providing fuel for potential generation projects.
Previously AGL stated the chilled fuel could be sourced from Europe, the Middle East, Africa, Asia and the United States.