June 07, 2024 [LNG Prime]- Venice Energy expects to take a final investment decision to build its FSRU-based LNG import project in the Port of Adelaide, South Australia, by August this year.

The Adelaide-based firm said on Thursday that the future of the proposed Outer Harbor LNG import terminal project in South Australia has “become clearer following strong interest from several international energy development companies with ties to both the United States and Asia”.

According to Venice Energy, its search for development partners for the A$300 million ($199.7 million) project in the Port of Adelaide has moved to formal negotiations with “several major companies”.

“The good news is that we now have a formal written offer on the table and have made significant advances with companies that develop and operate LNG import terminals and energy-related infrastructure around the world,” Venice Energy chair and managing director, Kym Winter-Dewhirst, said.

“The companies we are negotiating with have the balance sheet strength and the on-the-ground expertise to fully develop this type of project,” he said.

Winter-Dewhirst said the companies have insisted that Venice Energy’s project team remains in place during the two-year construction period and the commissioning phase.

“Obviously, there is still some distance to travel to lock in the best partners for the project, and we will work through these options via our own due diligence process,” he said.

“Our aim is to finalize this and push hard towards a final investment decision by August this year, with a construction start date in October,” Winter-Dewhirst said.

Converted FSRU

In February, Venice Energy, has signed a deal with Nebula Energy’s AG&P LNG to secure a converted FSRU for its planned project.

Winter-Dewhirst said that Greece’s GasLog sold the vessel assigned to Venice Energy’s project to AG&P LNG.

Venice signed a heads of agreement with Greece’s GasLog in July 2021, under which the latter agreed to supply an FSRU for the project.

Winter-Dewhirst also said at the time that the company met in Dubai and Abu Dhabi with several companies to discuss investment in Venice Energy and divestment of the Outer Harbor LNG project.

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