Australian energy infrastructure developer Venice Energy has entered into a sale agreement for its liquefied natural gas (LNG) terminal project to AG&P LNG, an LNG terminals and downstream infrastructure company and subsidiary of US-based Nebula Energy.
This deal follows eight months of complex negotiations, culminating in a binding term sheet signed in October last year.
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Venice Energy is spearheading the LNG terminal project in South Australia.
AG&P LNG will take over 100% of the financing, construction and operation of the terminal, as per the agreement.
The South Australian Government has already given the green light to the terminal and site enabling works were concluded earlier this year.
A final investment decision for the project is anticipated later this year, with the regasification terminal set to enhance energy security for South Australia from 2028 and address potential gas supply deficits in the south-east of the country.
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By GlobalDataVenice Energy chair Kym Winter-Dewhirst said: “Firstly, the regasification terminal will provide energy security to South Australia from 2028 onwards and secondly help alleviate forecast shortfalls in the gas supply market along the south-east of Australia.”
Over the past eight months, Venice Energy and AG&P LNG have collaborated closely to secure offtake customers via a mix of long-term and short-to-midterm gas sales agreements.
The project, situated at Outer Harbor in Port Adelaide, will feature a floating storage and regasification unit with a minimum capacity of around 145,000m³, alongside the construction of two new wharfs, loading arms, cryogenic piping, pumps and related infrastructure.
