Japanese power operator Jera and trading house Marubeni have pulled out of the planned 2 million tons/year Port Kembla LNG import project in New South Wales (NSW), Australia. Marubeni’s 30.1% and Jera’s 19.9% interest have been sold to Australian energy firm Squadron Energy which will now own 100% of the joint venture Australian Industrial Energy (AIE), the consortium behind the project. Financial details of the deal remain undisclosed.
Jera’s move to exit the project came a week after the utility company pledged to reduce CO2 emissions by 2030. Squadron chairman Michael Masterman said that despite leaving the project, Jera and Marubeni did not close a possibility in future involvement opportunities that might include LNG procurement and the development of an associated 800-MW gas-fired power plant. Squadron is committed to bringing the import terminal online by late 2022 as planned.
So far, the AIE has secured one 400-Mcm/year supply contract for EnergyAustralia. The AIE expects the construction of the project to be wrapped up in 14 to 16 months. Port Kembla is expected to have an importing capacity of 2.63-3.15 Bcm a year. Port Kembla is one of five LNG import projects in eastern Australia, although the country is among the world’s top LNG exporters. Eastern Australia receives gas mostly from offshore Victoria, which supplies are expected to decline sharply.
