The developer of the Newcastle GasDock LNG terminal in New South Wales, EPIK Co. Ltd. (EPIK), has engaged renowned energy consulting firm, Wood Mackenzie, to conduct a comprehensive analysis of the southeast Australian gas market in parallel with EPIK’s commercial efforts seeking terminal capacity subscribers.
EPIK has confirmed that it will make a summary of the Wood Mackenzie market analysis available to qualified 3rd parties that sign a non-disclosure agreement and submit an expression of interest in taking capacity at the proposed Newcastle GasDock terminal.
The Newcastle GasDock terminal is being developed to deliver the most competitive infrastructure solution for natural gas imports into NSW and will be located at the Port of Newcastle – an industrial hub home to the State’s largest gas and power users and a gateway to the broader New South Wales and southeast Australian gas markets.
The report is expected to provide a detailed insight into the competitiveness of LNG imports into southeast Australia, LNG pricing trends, and demand forecasting.
“Year on year, global LNG trade volume is increasing at a healthy pace and as LNG portfolio and commodity traders review opportunities to sign up for more long-term LNG positions, there is heightened demand for opportunities like the one created by our Newcastle GasDock project which can provide these companies access to markets that will ultimately support their current and future LNG positions,” detailed EPIK Managing Director, Jee Yoon.
EPIK states that the Newcastle GasDock project is distinguished from competing LNG import projects in Australia by providing LNG storage and regasification services to Australian and international players looking to bring competitively sourced LNG into Australia’s southeast gas market through its proposed terminal.
“We believe our business model is best suited to provide both the most cost-competitive and the most attractive solution overall for both potential commercial counterparts looking to gain access into the southeast Australian market, as well as Australian industrial, commercial and residential users who would benefit from additional long-term, competitive gas supply coming into the State,” Mr Yoon added.
The Korean-based company anticipates deploying a 170,000m3 class Floating Storage and Regasification Unit (FSRU) capable of supplying more than 80 per cent of NSW’s current gas demand, with the potential to increase throughput as demand requires.
EPIK Managing Director, Jee Yoon. (Image supplied).
Existing domestic gas supply and pipeline constraints resulting in high gas prices compound the need for the Newcastle GasDock terminal in NSW, which currently imports approximately 95 per cent of its current gas consumption from other States.
Companies interested in taking storage and regasification capacity at EPIK’s proposed Newcastle GasDock terminal may register their interest through an available form online here.
Qualified parties who have registered their interest and signed a non-disclosure agreement will receive a summary of the Wood Mackenzie market analysis report along with further project information in August.
In April 2019, EPIK announced it had executed an agreement with Watpac, a leading Australian EPC firm and a wholly-owned subsidiary of BESIX, for the exclusive provision of design, engineering and construction services for the onshore infrastructure components of the project.
In addition, EPIK has a strategic partnership with Hyundai LNG Shipping and is supported by leading advisors and consultants, including environmental and planning support from Arup, and legal and regulatory counsel from K&L Gates, among others.
