Australia's LNG import projects encounter buyer apathy

Despite Australia’s first import terminal nearing completion, the prospect of additional regasification projects is far from certain

Australia’s Squadron Energy said on 24 March that its Port Kembla project in New South Wales, which can supply more than 100PJ/yr of gas to the local market, was more than 90% complete. It has been two-and-a-half years since construction began on the project. However, growing complexity within the east coast gas market leaves uncertainty about how and where such developments fit within the energy mix. Indeed, despite Port Kembla’s imminent completion, the project still has not secured any buyers. This lack of demand is perhaps why the project’s FSRU is now en route to Egypt to start an 18-month contract at the port of Ain Sokhna. Delays set in Consultancy Wood Mackenzie revealed on 22 April