THE floating storage and re-gasification unit chartered for Port Kembla Energy Terminal use will be redeployed to Egypt under an agreement between Australian Industrial Energy, Höegh LNG, and Egyptian Natural Gas Holding
The 2019-built Hoegh Galleon was taken on charter by AIE under a 15-year agreement signed with Höegh LNG in June 2022. However, AIE has yet to obtain base customers for gas that would distributed from PKET.
The charter – which has 5- and 10-year early termination options – would originally have seen the 170,000 cu m vessel begin operations in late 2023. In a recent update AIE, now under the Squadron Energy umbrella, indicated the FSRU would not now be on lovation until 2026.
Accordingly, Hoegh Galleon has been sub-let to EGAS and will be used support energy security in Egypt. The unit will be located in Ain Sokhna for a likely period of 19-20 months, from June 2024 to February 2026.
“Höegh LNG is the industry leader in the rapid deployment of FSRUs, and we are pleased that we can provide this solution for EGAS together with AIE while continuing to develop our strong partnership,” Erik Nyheim, president and CEO of Höegh LNG, said.
In late March, Squadron Energy reiterated that PKET “remains in a strong position to address the forecast gas shortfall in Australia’s eastern states as the country transitions from fossil fuel to renewable energy.
“PKET, Australia’s first LNG import terminal, is not only the most advanced terminal with construction over 90% completed, but the only one to reach financial close. A new gas pipeline connecting the terminal to the Eastern Gas Pipeline was completed late last year.
“Timing of the FSRU’s arrival remains on track for 2026 when Squadron Energy expects to use the terminal for its own firming needs, in addition to commercial customer requirements. The Hoegh Galleon is set to be deployed in the northern hemisphere until 2026, but can be redeployed to import gas into NSW and Victoria for the 2025 winter if required.
“PKET remains the best short-term solution to provide gas to Australia’s eastern states without new local gas fields. It can supply up to 500TJ per day, enough to satisfy nearly all of Victoria’s, or 70% of NSW’s gas demand,” Squadron said.
AIE was originally a partnership between Squadron and Japan’s JERA and Marubeni, but Squadron took full control in October 2020. Squadron itself is the renewal energy company of Tattarang, the private investment vehicle of the Forrest family (Fortescue).
