AIE signs long-term charterparty agreement

AIE signs long-term charterparty agreement Jemena

Australian Industrial Energy (AIE) has signed a long-term charterparty agreement with Höegh LNG to supply the first Floating Storage and Regasification Unit (FSRU).

As the latest FSRU in Höegh LNG’s fleet, the Höegh Galleon will be used to receive, store and regasify liquefied natural gas at the Terminal when operations begin.

The Höegh Galleon has started construction of its berth facilities at Port Kembla.

By mid-2023 the FSRU is anticipated to be operational, which will make the project the first of its kind in Australia.

AIE and Höegh LNG have also agreed to collaborate on the future design and development of a new generation FSRU.

The new generation FSRU will be able to receive clean fuels to be used as an aspect of future green energy supply chains.

Initial feasibility work on the new FSRU will now begin, with the vessel expected to have the capability of delivering both natural gas and green hydrogen or derivatives.

Chairman of AIE and Tattarang CEO Andrew Hagger said the agreement with Höegh LNG supports AIE’s vision to actively resolve the energy crisis on the East Coast.

“The Terminal will be critical to ensuring hundreds of thousands of Australian businesses and households avoid supply shortfalls from 2023 onwards,” Hagger said.

“Now that critical infrastructure agreements and approvals are in place for the Terminal, we look to NSW and Victorian natural gas retailers to now take active steps to help resolve the energy security crisis they have warned about.”

Höegh LNG chief development officer Richard Tyrrell said the company is excited to support Australia’s first natural gas import terminal.

“We share AIE’s clean energy vision and look forward to working together on the next generation capabilities,” Tyrrell said.

“[Höegh LNG] will ensure that the Port Kembla Energy Terminal remains at the forefront of the energy transition.”

Recently, AIE signed a long-term lease for the Port Kembla Gas Terminal which may extend to up to 25 years.

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