Australian Industrial Energy (AIE) has signed a long-term charter party agreement with leading energy infrastructure and transport provider Hoegh LNG to supply the first Floating Storage and Regasification Unit (FSRU) to operate at the Port Kembla Energy Terminal being developed by AIE.
Under the agreement, the Hoegh Galleon will serve the Terminal, which has commenced construction of its berth facilities at Port Kembla, and is expected to be operational by mid-2023, making it the first project of its kind in Australia.
In addition, AIE and Hoegh LNG have agreed to collaborate on the future design and development of a new generation FSRU capable of receiving clean fuels which can be used as part of future green energy supply chains.
Initial feasibility work on the new FSRU will now begin, and while the final design is yet to be confirmed, the vessel is expected to have the capability of delivering both natural gas and green hydrogen or derivatives thereof, unlocking further opportunities for the Terminal to support a future hydrogen energy industry in Australia.
Chairman of AIE and Tattarang CEO Andrew Hagger said the agreement with Hoegh LNG supports AIE’s vision to actively resolve the energy crisis on the East Coast and accelerate the use of clean energy fuels that support Net Zero ambitions.
“With the phasing down of Australia’s fossil fuel industry already underway, the Terminal will be critical to ensuring hundreds of thousands of Australian businesses and households avoid supply shortfalls from 2023 onwards,” Mr Hagger said.
“Now that critical infrastructure agreements and approvals are in place for the Terminal, we look to NSW and Victorian natural gas retailers to now take active steps to help resolve the energy security crisis they have warned about.”
Richard Tyrrell Chief Development Officer at Hoegh LNG said the company is excited by the potential to support Australia’s first natural gas import terminal, providing the market with resilience and security of supply.
“We share AIE’s clean energy vision and look forward to working together on the next generation capabilities that will ensure that the Port Kembla Energy Terminal remains at the forefront of the energy transition,” Mr Tyrrell said.
Hoegh LNG is a leading FSRU provider with a large, modern fleet of FSRUs transporting and regasifying natural gas globally. The Hoegh Galleon is the newest FSRU in Höegh LNG’s fleet and it will be used to receive, store and regasify liquefied natural gas at the Terminal when operations begin.