South Australian energy infrastructure developer, Venice Energy and one of Australia’s leading energy providers, Origin Energy (Origin), have agreed on a structural framework that will underwrite the commercial viability of the Outer Harbor LNG import terminal to be built at Port Adelaide, according to the company's release.
The agreement comes 18-months after the Project was approved by the South Australian Government and will see Origin become the single user of the terminal for a minimum of 10- years, with further extension options available.
Venice Energy believes opening up eastern Australia to the global LNG market will ensure gas will always be available, when needed, to act as back-up supply (firming capacity) during periods when not enough wind or solar is available, which in South Australia is approximately 30% of the year.
Venice Energy secured government project approvals in December 2021. Up to 110 petajoules of gas has been approved to flow through the terminal annually. The LNG terminal will be the first in the world to operate exclusively on renewable energy. The project will create more than 300 jobs during construction and a further 60 jobs once fully operational. Stage 1 enabling works will begin in November. Construction of the terminal and associated infrastructure run for approximately 24 months. First gas is expected to flow into the network by May 2026 following a period of commissioning.