AGL LNG Import Project Slowed by Environment Review

By Sonali Paul
Wednesday, October 10, 2018

Plans by Australia's AGL Energy to start importing liquefied natural gas from 2021 will be delayed after the state of Victoria called for the company and its pipeline partner to submit a full environmental assessment of their project.

The review process typically takes nine to 12 months, which means AGL will not be able to reach a final investment decision on the A$250 million ($178 million) jetty project by June 2019, as it had hoped.

AGL had been on track to be the first of four proposed LNG import projects looking to fill an expected gas supply shortfall in southeastern Australia from 2021.

AGL declined to comment on Wednesday on how the environmental review would affect the project's timing but said it was committed to working with the community and following all state and regulatory assessment requirements.

"Crib Point will be a safe and environmentally responsible project, making gas supply for Victorians more secure, whilst critically bringing much needed competition to place downward pressure on gas prices," AGL general manager Phaedra Deckart, who is leading the project, said in an emailed statement.

The state's move follows protests in the community around the Western Port location where AGL plans to build a jetty to park a ship that would regasify imported liquefied natural gas (LNG), and hook it up to a new gas pipeline to be built by APA Group.

"While this project has great potential, it's critical we assess its impacts thoroughly, to protect the community and the environment," state planning minister Richard Wynne said in a statement on Tuesday.

The state's Labor government, heading to an election in November, has yet to determine the scope of the review, but it would include looking at the impact of AGL's floating storage and regasification unit (FSRU) on the internationally recognized wetlands area around the proposed jetty.

"We're encouraged the state is using this process. It means there's going to be proper scrutiny of the project," said Nicholas Aberle, who has been leading a campaign against the project for green group Environment Victoria.

The group is concerned about the impact on sea life from chlorinated water that would be dumped from the FSRU, and argues that Australia, the world's second-largest LNG exporter, should not need to import gas.

"We could have a gas reservation policy. We could get smarter about cutting our energy waste. So why are we even entertaining the idea of damaging an internationally recognized wetlands?" Aberle said.


($1 = 1.4045 Australian dollars)

(Reporting by Sonali Paul; editing by Richard Pullin)

Categories: Gas Australia/NZ Environmental Floating Production Tankers Pipelines Ports LNG

Related Stories

QatarEnergy's LNG Expansion Faces Delays from Hormuz Crisis

Santos Expands LNG Portfolio with Asia, Canada Deals

Saipem Bags Commissioning Contract for Türkiye-Bound FPU

TGS Extends Work on Indonesia’s Largest Seismic Acquisition Project

FPSO for Azule Energy’s Angola Offshore Field Starts Taking Shape in China

ABL Gets Papua New Guinea FSO Job

Inpex Starts Construction of Indonesia's Abadi LNG Project

Tetragon Energy Advances Oil and Gas Exploration Activities off Philippines

Ruwais LNG Commitments Top 90% Capacity with New INPEX Deal

Saudi Arabia Eyes Oil Pipeline Expansion to Red Sea

Current News

Oil Drops as Hormuz Reopening Prospects Ease Supply Concerns

ONGC Strikes Gas in Deepwater Well off India

PTTEP, Valeura Greenlight Bussabong Gas Development off Thailand

QatarEnergy's LNG Expansion Faces Delays from Hormuz Crisis

Hormuz Ship Traffic Slumps as Middle East Conflict Drags On

Oil Goes Down 2% as Saudi Supply Concerns Recede

Indonesia Picks Winners for Six Oil and Gas Blocks, Puts Eight More on Offer

PTTEP Gets Thai Approval for Offshore Stake Transfer to Valeura Energy

Valeura Finds New Oil Near Manora Field in Gulf of Thailand

MODEC, Eld Energy Advance Fuel Cell Power for FPSOs

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com