Australia’s Viva Energy Seeks FSRU for LNG Terminal in Geelong

Australia-headquartered Viva Energy, an energy infrastructure business, has partnered with Poten & Partners, a liquefied natural gas (LNG) consultant, to secure a floating storage and regasification unit (FSRU) for its proposed LNG terminal in Geelong, Australia.

Viva Energy has tasked Poten & Partners with sourcing expressions of interest from the global maritime industry to provide an existing FSRU or convert an LNG carrier into an FSRU for the terminal. The new terminal, planned next to Viva Energy’s oil refinery in Geelong, requires a vessel with a capacity of 160,000-180,000 cubic meters (cbm) of gas, capable of delivering up to 750 million standard cubic feet of gas per day.

Negotiations with potential capacity holders are at an advanced stage, with an environmental impact assessment expected from the Victorian government in April 2025. This sets the stage for a final investment decision (FID) by the end of the year, paving the way for operations to commence in 2028.

Addressing Gas Shortfall

Viva Energy believes the LNG terminal will help alleviate the gas shortfall forecast for Australia’s southeast coast. With over 2.2 million households and 60,000 businesses relying on gas daily, the market forecasts by the Australian Energy Market Operator (AEMO) highlight the need for alternative gas supply sources.

Following TGS’s decision to halt gas supply search in the Otway Basin, concerns over energy security in Victoria have escalated. The Australian Competition and Consumer Commission (ACCC) report indicates that areas like New South Wales and Victoria, constrained by regulatory uncertainties, may need to depend on other states for gas supply despite having untapped gas resources.

The proposed gas terminal project involves extending the Refinery Pier in Corio Bay, mooring an industrial ship for LNG shipments, constructing a gas pipeline to the Victorian Transmission System, and establishing an onshore treatment facility.

As Australia looks towards securing its energy future, Viva Energy’s initiative in Geelong represents a significant step towards enhancing gas supply reliability for households, industries, and electricity generation.