Squadron Energy has selected Spanish energy company Reganosa to operate and maintain the liquefied natural gas (LNG) terminal at Port Kembla in New South Wales, Australia.
The Port Kembla LNG terminal is a floating storage and regasification unit (FSRU) project developed by Squadron Energy.
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It is designed to address gas supply challenges on Australia’s east coast.
The contract, finalised after an international selection process, covers the preservation, operation and maintenance of the terminal’s onshore section.
It carries an initial five-year term with the possibility of a three-year extension.
Under the contract, the FSRU will be temporarily disconnected and maintained in optimal condition for quick reactivation when required.
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By GlobalDataThe facility will be modified to align with the country’s seasonal energy demand.
Squadron Energy operations executive general manager Stuart Davis said: “By bringing together global expertise and local commitment, we are ensuring reliable gas supply for the eastern market while laying the groundwork for a flexible, competitive and sustainable energy system.
“The Port Kembla Energy Terminal will strengthen domestic gas supply, enhance energy security and support Australia’s energy transition without the need for new gas fields that lock in emissions for decades to come.
“The terminal is the only solution to decades-long east coast gas shortfalls, which has put significant cost pressures on households and businesses.”
Reganosa said that the Port Kembla facility represents its first contract in Australia and its entry into the Oceania market, extending its operations to all five continents.
The company also operates in Bangladesh, China, East Timor, Hong Kong, India, Jordan, Kuwait, Malaysia, the Philippines and Vietnam.
According to Squadron Energy, this partnership is also expected to generate local employment, focusing on regional hiring.
Reganosa chief operating officer Miguel Ángel Florez said: “Our experience in Asia and our adaptable operating model have enabled us to enter the Australian market and contribute to the region’s energy security.
“This contract reinforces Reganosa’s strategy of global expansion and our commitment to sustainable energy infrastructure,” he added.
