In a bid to establish a new gas-importing terminal, South Korea’s EPIK Co. Ltd, has reportedly entered into an agreement with the Port of Newcastle, a major trade and logistics center in Australia.
EPIK Co. Ltd, an LNG (Liquefied Natural Gas) floating storage & regasification unit company, unveiled that the preliminary works of the gas import terminal set-up have commenced. The project named Newcastle LNG will be located within the Port of Newcastle, at the backend of the current gas transmission network, revealed credible sources.
Australian Mining reports that the Newcastle LNG project is expected to include a 170,000- cubic meter new-build FSRU (Floating Storage and Regasification Unit) with an on-shore infrastructure and a shipyard, which is subject to regulatory approvals. The report further highlights that the project is also strategically placed inside the Port of Newcastle, where the prices of natural gas are higher than those in Asia.
EPIK’s Managing Director and Founder Jee Yoon, was reported saying that the company is confident that, by importing LNG through the new and low-cost FSRU terminal, it will be able to provide an infrastructure solution that is likely to deliver a long-standing and cost-effective source of alternative gas supply to the region. He further expressed excitement on its partnership with the Australian company and is looking forward to expanding its relationship by discussing various potential projects such as an LNG bunkering facility and a gas-fired power plant.
According to Jee Yoon, the LNG importing strategy comes on the heels of the company’s assessment of the gas market of New South Wales, specifically the coastal demand regions like Sydney and Newcastle.
Ian Doherty, Executive Manager customer and strategic development, Port of Newcastle, was quoted stating that the deep-water port was placed on Australia’s east coast on account of its significant channel and land capacity. He further claimed that this development prospect is consistent with the company’s diversification plans.
The South Korean company released in a statement that the potential investment for the new gas import project is estimated to be between USD 400 million and USD 430 million.
