December 10, 2018 [The Sydney Morning Herald] - A South Korean company has joined the jostle to provide the country with gas import capability proposing a $500 million facility at the Port of Newcastle.
EPIK Co. Ltd, a liquefied natural gas floating storage and regasification unit company, on Wednesday announced the commencement of preliminary works after securing an agreement with the port.
The project, named Newcastle LNG, will be situated at the back-end of the existing gas transmission network within the port.
According to EPIK the potential investment for the Newcastle project would be valued at between $US400 million ($A547 million) $US430 million.
“We are very excited to be working with Port of Newcastle and hope to expand our relationship by discussing other potential projects, such as a gas-fired power plant and an LNG bunkering facility.”
The project will face some stiff competition for local customers with several other import terminals all targeting local businesses that have struggled to get gas supply as local producers targeted offshore export markets.
Other terminals on the cards include AGL’s project at Crib Point in Victoria and billionaire Andrew Forrest’s pitch to build at port Kembla in NSW.
“This type of development opportunity is consistent with our diversification plans and we’re pleased to be supporting EPIK as it conducts preliminary investigation work, especially given its potential benefits for the NSW economy,” Mr Doherty said.
This will include a 170,000 m3 class newly-built floating storage regasification unit and associated on-shore infrastructure.
EPIK expects to place an order for the regasification unti with a shipyard after receiving regulatory approvals for the project.
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