US firm bankrolls its Singapore arm’s entrance into Australian LNG market

Florida-headquartered Nebula Energy will foot the bill for its majority-owned AG&P LNG to spread its wings into the Australian liquefied natural gas (LNG) arena with the acquisition of Venice Energy, a developer of an import terminal project in South Australia, which is said to be the world’s first floating LNG (FLNG) import terminal that will run on 100% renewable energy.

As AG&P LNG has agreed to buy Venice Energy, this will enable it to expand its LNG portfolio with the $300 million Outer Harbor LNG project in Port Adelaide, South Australia, which the Singapore-based firm plans to build by converting a 145,000 cbm LNG carrier (LNGC) to a floating storage and regasification unit (FSRU) with a peak send-out capacity of 400 mmscfd.

Peter Gibson, Chairman of AG&P LNG, commented: “We are excited to enter the Australian market with our decision to acquire Venice Energy. Venice Energy has got the Outer Harbor LNG import terminal project shovel-ready with all key permits in place, offering a key advantage over other LNG import terminal proposals in the region.

“With our signature end-to-end LNG value chain solutions, from investment to LNG supply, terminal development and operations and maintenance, AG&P LNG will work with Venice Energy to bring the terminal online by Q1, 2027. Together, we will develop this very timely and pivotal project to bridge the accelerating decline in gas supplies and help reinforce energy security for South Australia and Victoria.”

The environmental approval for the Australian LNG project was granted in December 2021 with the project being designated as critical state infrastructure. After more than six years of planning and development, the Outer Harbor LNG project became shovel-ready, with all regulatory approvals in place. Venice Energy clinched an exclusivity agreement with Origin Energy in October 2023.

Leveraging Nebula Energy’s integrated LNG value chain platform, AG&P LNG intends to provide end-to-end solutions from LNG supply, and terminal development, to operations and maintenance. The 2 mtpa Outer Harbor LNG import terminal is expected to be commissioned by Q1 2027. When operational, it is expected to be one of the first terminals in the world to use 100% renewable energy for its operations.

Kym Winter-Dewhirst, Chairman of Venice Energy, highlighted: “Venice Energy’s 8-month search for a strategic partner ended with our choice to go with AG&P LNG over and above other major international energy infrastructure companies. This is a milestone for Venice Energy and through our partnership with AG&P LNG we can provide a secure gas supply to both South Australia and Victoria by Q1 2027.

“AG&P LNG brings to us the financial muscle through Nebula Energy, majority owner of AG&P LNG and its unique end-to-end integrated wider portfolio LNG terminal development and operations capability. We were impressed by AG&P’s expanding portfolio of LNG operations and terminal projects across the Philippines, Vietnam, Indonesia and India. The Outer Harbor LNG import terminal is poised to be among the first terminals to come online and address the shortage of gas supply across southeast Australia.”

Since South Australia and Victoria have recently been faced with rapidly declining domestic gas availability, the Outer Harbor LNG import terminal is expected to help address gas shortages as the domestic supplies continue to decline over the next decade.

This terminal is seen as a way to improve energy security for South Australia, enhancing grid stability and providing firm, dispatchable power to support the state’s renewable energy sector while creating jobs, introducing a new industry, and attracting investment.