Vopak LNG proposes floating gas terminal offshore at Avalon
By Sourced Externally
March 13, 2021
A GLOBAL fuel storage company wants to develop a floating gas terminal at an offshore mooring near Avalon.
Vopak LNG, part of the A$7.85 billion Dutch multinational Royal Vopak, is proposing to build a LNG regasification terminal at an offshore marine berth in Port Phillip Bay with a subsea pipeline to the shore.
The terminal would regasify imported LNG from large supply ships and pump it through a
pipeline from the marine berth to the shore near Beach Road at Avalon. From there the pipeline would continue to run underground, predominantly through land owned by Melbourne Water used for farming, edge a private property and Avalon Airport before connecting to the current pipeline infrastructure for the Victorian market.
Vopak LNG president Kees van Seventer said the LNG project would provide a “bridge to renewables” as the state moves towards zero net carbon by 2050.
“Vopak LNG is able to bring a very strong track record of development and operations with LNG import terminals,” Mr van Seventer said.
The company said several existing gas market participants have signed agreements in support of the project development.
Vopak Australia’s managing director Fulco van Geuns said the Avalon venture would preferably source construction, products and materials as well as jobs through local suppliers, with an operations centre to be ideally located in Geelong.
“We would like to have the facility operational before Victoria is expected to be facing substantive gas shortages,” he said.
Vopak LNG already owns and operates LPG terminals in the Netherlands, China and Singapore and has LNG facilities in Colombia, Mexico, the Netherlands and Pakistan.
One of the world’s leading energy storage companies with involvement in industrial, chemical, gas and oil facilities, Royal Vopak is this year planning to allocate more than A$450m to growth investments through existing committed projects and new business development.
Vopak reviewed sites around Port Phillip Bay before identifying the marine berth concept offshore from Avalon which it said struck a balance between the environment, marine life and social amenity, while being close to existing industrial zoning in the south west corridor.
It said the site was identified following extensive engagement with local agencies and that another site at Geelong was dismissed because of the dredging required and the tight navigational and berthing requirements.
Vopak becomes the third LNG regasification venture being developed in Victoria.
Viva Energy has committed to the front end engineering design and engineering for a floating gas terminal at Refinery Pier, which does not require a subsea pipeline, but a final investment decision by the board is not expected until the middle of next year.
Energy company AGL is also pursuing controversial plans to develop a floating LNG gas terminal at Crib Point in Western Port Bay.