Australian refiner and marketer Viva Energy has signed an agreement with the operator of Victoria state's Geelong port to build infrastructure for the proposed 500-600 TJ/d (13.35mn-16.02mn m³/d) Geelong LNG import terminal to serve the east Australia gas market. The agreement involves the construction of an extension to the existing refinery pier to provide an additional berth for a floating storage and regasification unit (FSRU), which will be capable of receiving LNG, said Viva that is 45pc owned by commodity trading firm Vitol. GeelongPort will build the extension and license the pier to Viva, which in turn will construct the related infrastructure including a gas pipeline and treatment facility to enable gas to be supplied into the gas network in Victoria.
The start of construction remains subject to Viva making a final investment decision on the terminal. Geelong is one of two planned LNG import terminals for Victoria. Dutch storage firm Vopak is proposing a project at Avalon using a 636-849 TJ/d FSRU. Another two LNG import projects planned for Victoria have already been shelved. Australian gas firm and utility AGL Energy in May 2021 ceased further development of the proposed 530 TJ/d Crib Point after the Victoria government blocked development because of its potential impact on the environment. ExxonMobil halted its plans because of insufficient interest from prospective gas buyers in committing to long-term supply contracts to underpin the project. East Australia faces a possible shortfall in the June-August winter of 2023 if there is extreme weather conditions and a delay in gas availability from New South Wales state's 2mn t/yr Port Kembla LNG import terminal, according to the Australian Energy Market Operator.