Squadron Energy acknowledges the announcement of the Federal Government’s gas reservation scheme, requiring gas exporters to reserve a portion of the gas production for domestic use from 2027.
The move seeks to address Australia’s impending east coast gas shortfall by increasing supply and therefore putting downward pressure on price.
Squadron Energy CEO Rob Wheals said Port Kembla Energy Terminal (PKET) would aid gas producers in moving gas to where it is needed in the most efficient way.
“Port Kembla Energy Terminal is the only regasification terminal built in Australia, with plans to be operational by winter of 2028 but with also the option to be in market in 2027,” Mr Wheals said.
“The terminal can act as a virtual pipeline to deliver gas from Queensland, NT and WA to meet east coast gas needs. It can deliver gas more flexibly and at lower cost than a new pipeline, and on par with existing pipelines.
“A reservation scheme increases domestic supply while PKET ensures gas can get to where it is needed. We have built the terminal and connecting pipeline, we have leased the FSRU, we have appointed the operator and Jemena is reversing the Eastern Gas Pipeline to enable supply to Melbourne as well as Sydney.”
The Port Kembla regasification terminal is connected to the Eastern Gas Pipeline (EGP) through a 12-kilometre pipeline, and is capable of covering up to 70 per cent of eastern gas market demand and supporting consumption peaks.
Squadron Energy recently appointed Reganosa Servicios to operate and maintain the onshore facilities of its Port Kembla Energy Terminal.
On Monday, Energy Minister Chris Bowen said the gas reservation scheme would be put forward for consultation which would see 15 to 25 per cent of gas reserved for local use.
The plan, which requires exporters to prioritise domestic supply first, is set to come into effect from 2027.
Squadron notes some recent commentary suggesting PKET has not yet reached FID – whereas the terminal has been built and landside commissioning has been completed.