Venice Energy has agreed to sell its liquefied natural gas (LNG) terminal project in South Australia (SA) to AG&P LNG, a subsidiary of Nebula Energy.
The terminal is planned to be developed in Outer Harbor, Port Adelaide with a capacity of two million tonnes per annum of LNG. It will feature a floating storage and regasification unit (FSRU) with a storage capacity of atleast 145,000m3.
In addition, the terminal will comprise two new wharfs, loading arms, cryogenic piping, pumps, and additional infrastructure.
AG&P LNG will fully finance, build, and operate the terminal, which would enhance energy security for South Australia, starting from 2028, and address gas supply lapse in the region.
The transaction follows eight months of negotiations between the two companies, initiated with a binding term sheet signed last October.
The South Australian government has already approved the terminal, and preliminary site works were completed earlier this year.
Venice Energy and AG&P LNG have been working together for securing off-take agreements with customers for gas sales.
Venice Energy chair Kym Winter-Dewhirst said: “The agreement means AG&P LNG will provide 100% of project financing and will construct and operate the terminal. A Final Investment Decision (FID) is expected later this year.
“Firstly, the regasification terminal will provide energy security to South Australia from 2028 onwards and secondly help alleviate forecast shortfalls in the gas supply market along the southeast of Australia.”
AG&P LNG, which operates across Southeast Asia, South Asia, and the US, aims to establish over seven LNG import terminals worldwide by 2030.
In addition to Nebula Energy, the company is backed by Asiya Investments, Osaka Gas, and JBIC, and is said to be well-positioned large-scale project execution.
