Australia mulls LNG import

[DanilKa + 443]

Article in Platts highlights insanity of dysfunctional Australian energy market. NSW and VIC (where bulk of population lives) governments are pursing popular NIMBY strategy on gas production from own fields and South Australia just recently voted out Labor government which put it on 50% renewable energy (~40/10 wind/solar) which require backup by diesel generators and imported electricity.

AGL, having exited gas exploration and actively seeking to exit upstream business, is one of the proponents of the LNG regasification unit. It may work well for them - being a large generator of electricity from brown coal they could benefit from "high forever" offshore-market-linked LNG price. That is same company who screams loudest about renewables while emitting most CO2 of any company in Oz - this "license to cheat" thing seems to be real...

 

Australian energy companies are considering LNG imports to meet a shortfall in domestic gas supply, a move that will impact regional gas markets, trigger new trade flows and influence pricing decisions for the players involved.
In an unusual turn of events, Australia could end up importing LNG shortly after topping Qatar as the world's largest LNG exporter by the end of the decade, with at least two floating storage and regasification units on the drawing board and progressing rapidly.
ASX-listed AGL Energy has proposed an FSRU at Crib Point, off the coast of Melbourne, with a capacity of 1 million mt/year. It is expected to clear final investment decision in 2019 and start operations within two years of FID.
The second FSRU is planned at Botany Bay near Sydney by a consortium called Australian Industrial Energy, comprising Australia's Squadron Energy and Japan's Jera and Marubeni. Squadron Energy is a privately owned natural resources company and part of iron ore magnate Andrew Forrest's Minderoo Group. The AIE project expects FID this year and imports by 2020.

[Kate Turlington + 44]

This is a great article, and I'm wondering where else we can apply it other than Australia?

[DanilKa + 443]

8 hours ago, Kate Turlington said:

This is a great article, and I'm wondering where else we can apply it other than Australia?

Kate, do you mean repeating insanity of moving LNG by vessel instead of developing own (abundant) gas or using FSRUs? Later is possibly anywhere with enough demand and proximity of sea (or pipeline to it) and former - wherever populist politicians are bending over to vocal minorities. Situation with Kinder Morgan pipeline in BC is analogous in its absurdity.

[DanilKa + 443]

ExxonMobil jointed the race, promising to build LNG import terminal for ~$100M (half-price from AGL and Forest). It s happening. https://www.theaustralian.com.au/business/mining-energy/exxon-mulls-victorian-lng-import-plant/news-story/e3e3e9ec61455585204b2b5ab456b076

[NickW + 2,714]

Another aspect of this madness is that a pipeline would largely utilise Australian labour and materials - the steel pipe can be manufactured in Australia. 

Floating Re-gasification plants will be built in Korea or China.

[TomTom + 183]

Curious decision from Exxon to build a terminal then.... just read this article that says that Exxon is looking to up exploration efforts off the Australian shore: https://oilprice.com/Energy/Natural-Gas/Australia-Looks-To-Tackle-Its-Looming-Gas-Shortage.html