Marubeni Corporation (Marubeni), JERA Co., Inc. (JERA) and Squadron Energy Pty Ltd (Squadron), a subsidiary of Australia's Minderoo Group, signed a Memorandum of Understanding under which they will conduct a joint feasibility study regarding establishing an LNG import terminal and gas supply project in New South Wales (NSW), Australia.

Marubeni, JERA, and Squadron Energy Undertake Feasibility Study on LNG Import Terminal and Gas Sales in New South Wales, Australia
(Image for illustrative purposes only) LNG tanker Bishu Maru - Photo courtesy of JERA

The focus of the feasibility study is a potential project to develop an LNG import terminal at an existing port in NSW, which will include chartering a Floating Storage and Regasification Unit (FSRU), construction of associated onshore and offshore facilities, and provision of gas to local customers in NSW.

Marubeni has been operating in Australia for over 50 years and has significant energy expertise in Australia, as well as considerable experience in global FSRU business. JERA has expertise and long experience in LNG procurement and import terminal operations. Marubeni and JERA are pleased to be able to partner with Squadron, an Australian energy company with strong relations with local community and industrial players. Marubeni and JERA together with Squadron, will combine their expertise in undertaking the study, which will include initiation of gas marketing in NSW as well as making soundings regarding procurement of LNG through JERA’s global network.

Marubeni and JERA believe that this FSRU-based project can be completed and commence the supply of LNG to NSW in timely manner, which will contribute to the stability and diversity of energy sources available to NSW, where gas supplies are expected to remain tight in upcoming years. Marubeni and JERA think that this project fits well with and will enhance the robust relationship between Australia and Japan, and will contribute to the availability of stable supplies of LNG not only in Australia and Japan, but also in the Asia Pacific region.

The Minderoo Group encompasses the philanthropic and commercial activities of Andrew and Nicola Forrest. The Group pursues innovative opportunities, with a particular focus on forward looking investments. In addition to a 33% shareholding in the Fortescue Metals Group, the Group holds a number of pastoral leases, property investments, Harvey Beef and a suite of energy and mineral projects.

Squadron Energy is a 100% owned subsidiary of the Minderoo Group and is focused on exploration and development projects in the oil, gas, renewable energy and energy infrastructure sectors.

Source: Marubeni