Australian LNG import terminal nears completion amid gas shortfall concerns

Squadron Energy has completed the Port Kembla Energy Terminal (PKET), Australia’s inaugural liquefied natural gas (LNG) import facility, situated in New South Wales. Commissioning of the onshore receiving infrastructure is currently underway to ensure operational readiness.

Despite the terminal’s completion, LNG imports are not scheduled to arrive until 2026. This timeline aligns with forecasts from the Australian Competition and Consumer Commission, which anticipates gas shortages in the eastern states as early as 2026.

The facility is equipped to supply up to 500 terajoules of gas per day, sufficient to meet nearly all of New South Wales’ peak daily demand.

This capacity positions PKET as a pivotal component in mitigating the anticipated gas shortfall in Australia’s eastern regions.

The floating storage and regasification unit (FSRU) designated for PKET, Höegh Galleon, is currently under a long-term charter with Squadron Energy. In the interim, the FSRU is deployed in the northern hemisphere and is expected to be available for operations at Port Kembla in alignment with the 2026 import commencement timeline.

While the physical infrastructure is complete, the timeline for initiating imports is influenced by several factors, including market demand, regulatory approvals and the synchronisation of supply contracts.