Australian energy infrastructure developer Venice Energy and its compatriot energy provider Origin Energy have agreed on a structural framework that will underwrite the commercial viability of the Outer Harbor LNG import terminal to be built at Port Adelaide.
The agreement will see Origin become the single user of the terminal for a minimum of 10 years, with further extension options available.
Venice Energy Chair and Managing Director Kym Winter-Dewhirst informed that Origin and Venice Energy’s subsidiary Venice Regas will now enter into an exclusivity arrangement that will allow for the completion of a fully formed terminal use agreement over the coming weeks.
“This is a major milestone for this project and ensures that the stage 1 enabling works will begin shortly. The project’s approvals allow up to 110 petajoules per annum of LNG to pass through the terminal and into local and interstate gas networks, thereby reducing forecast gas shortages in the southeast of Australia from mid-2026 and beyond,” Winter-Dewhirst stated.
“Without the security of supply provided by this terminal, the network’s ability to maintain 24/7 on-demand energy to commercial, industrial and domestic customers would be in jeopardy.”
Venice Energy said the company believes opening up eastern Australia to the global LNG market will ensure gas will always be available, when needed, to act as backup supply (firming capacity) during periods when not enough wind or solar is available, which in South Australia is approximately 30% of the year.
To remind, Venice Energy secured government project approvals in December 2021. Up to 110 petajoules of gas has been approved to flow through the terminal annually.
Stage 1 enabling works are expected to begin in November 2023, and construction of the terminal and associated infrastructure will run for approximately 24 months.
The first gas is expected to flow into the network by May 2026 following a period of commissioning.