Australia’s Viva Energy aims to start front-end engineering and design work on a planned LNG import terminal at its Geelong refinery by the end of this year.
The downstream player announced earlier this year it plans to build the LNG import facility that includes installing an FSRU as part of its Geelong energy hub in the south-eastern Australian state of Victoria.
It also launched the process of seeking expressions of interest from commercial partners for the proposed import facility.
“We expect to be in a position to commit to FEED work before year-end and continue work on other opportunities associated with the energy hub,” Viva’s chief executive Scott Wyat said on Monday announcing the company’s half-year results.
The LNG project would form a key part of the energy hub to be developed alongside the company’s existing Geelong refinery that has been in operation since 1954.
Besides the FSRU, the LNG import plan would require an extension of the existing refinery pier and construction of a new 6.5km pipeline to take the gas from the facility to the existing gas transmission system.
Viva hopes to bring the fuel from existing Australian LNG production facilities helping fill gas supply shortages in Victoria and underpin growing renewable generation.
According to the Australian firm, the LNG terminal could have the capacity to supply around half of Victoria’s gas needs.
Apart from the LNG importing facility, the Geelong hub would include a solar energy farm on surplus refinery land, and support the emerging hydrogen industry.