Newcastle LNG developer, Hyundai LNG partner on FSRUs

LNG project developer EPIK Co (EPIK) and Hyundai LNG Shipping Co have agreed to a partnership to jointly develop floating storage and regasification unit projects around the globe, including the Newcastle LNG FSRU import project at the Port of Newcastle, Australia.

“Partnering with Hyundai LNG Shipping marks a key strategic milestone for EPIK, contributing significant expertise and support to advance our flagship Newcastle LNG project,” said EPIK’s founder and managing director Jee Yoon.

With a fleet of eight LNG carriers, South Korea-based Hyundai LNG Shipping transports approximately 17% of all imported LNG to South Korea.

“EPIK has identified a significant opportunity for the New South Wales (NSW) market with the Newcastle LNG project,” said Hyundai LNG Shipping president and chief executive KyuBong Lee.

In December, EPIK announced its Newcastle LNG project at the Port of Newcastle, the world's biggest coal export port. The project will include a 170,000 m³ newbuild FSRU and associated onshore infrastructure, with an investment of between US$400M and US$430M.

In addition to the import terminal, EPIK is considering additional gas-related infrastructure that would benefit the NSW region, including gas-fired power and LNG bunkering facilities. EPIK expects to place an order for the FSRU newbuild with a shipyard subject to receiving regulatory approvals for the project, which the company currently estimates to receive by early 2020.