LNG terminals and ports in record-breaking mode

A similar capacity is planned for the GAIL owned by Dabhol LNG terminal, which has a nominal capacity of 5M tpa, but is limited to 2.6M due to having to be idled during the monsoon season. GAIL intends to extend the breakwater at the Dabhol LNG terminal to allow a more extensive season of operation and increase the nominal capacity to 12M tpa. This is part of the overall strategy announced in June 2021, when the then Indian minister for petroleum and natural gas and steel, Dharmendra Pradhan, said India is committed to achieving a 15% share of natural gas in the primary energy mix by 2030 to help reduce environmental pollution and meet its commitments to COP-21. This would require more than doubling the LNG import capacity, even with the proposed Dabhol extension.

Australia will more than double its import capacity when its only LNG import terminal comes online. Australia is one of the top three LNG exporters in the world but growing demand for greener energy has led to the development of an import strategy, led by the Port Kembla Energy Terminal, which has reached a financial close.

The construction is over 90 per cent completed and a new gas pipeline connecting the terminal to the Eastern Gas Pipeline was completed late last year.

Critically, Squadron Energy has secured the FSRU Hoegh Galleon, to receive imported gas without the need for new gas fields. The FRSU will remain on sublease until required.

Timing of the FSRU’s arrival remains on track for 2026 when Squadron Energy expects to use the terminal for its own firming needs, in addition to commercial customer requirements. Hoegh Galleon is set to be deployed in the northern hemisphere until 2026, but can be redeployed to import gas into NSW and Victoria for the 2025 winter if required.

According to Squadron Energy, the Port Kembla Energy Terminal remains the best short-term solution to provide gas to Australia’s eastern states without new local gas fields. It can supply up to 500TJ per day, enough to satisfy nearly all of Victoria’s, or 70% of NSW’s, gas demand.

Further north, in Papua New Guinea, an LNG terminal sold its first LNG spot cargo. In mid-April 2024, Kumul Petroleum Holdings Limited directly marketed its first LNG cargo on the spot market from its share of product from the PNG LNG Gas Project, which was not committed to long-term sales agreements.

Confirmed in March 2024, the deal is to sell 144,000 m3 of LNG on FOB terms to PetroChina International Corporation Limited, after a tender process held in February 2024. As at mid-April 2024, the 2022-built, 174,000 cbm Wudang was on the PNG LNG Project wharf at Caution Bay being loaded.

KPHL managing director, Wapu Sonk, said: “It marks an important milestone for our company. It is the first time for Kumul Petroleum to market our equity share of LNG production from the PNG LNG Project, that is above the long-term sales purchase agreement volumes.

“Kumul Petroleum has a 16.77% share in the PNG LNG Project and this entitles us to sell approximately 14 LNG cargoes over the next four years. Also, once we conclude the acquisition of an additional 2.6% of the PNG LNG Project, this will provide us with more LNG to sell on the spot market.

“We are currently in talks with other potential buyers who will be purchasing LNG shipments from us in the future.”

In a separate move, the terminal also discharged a cargo of diesel and aviation fuel from the product tanker STI Seneca in an arrangement with the government of Papua New Guinea to relieve fuel shortages in the country.