MELBOURNE (Reuters) - Exxon Mobil Corp <XOM.N> said on Monday it would not go ahead with a proposed LNG import terminal in southeastern Australia "at this stage", as it was unable to line up enough buyers for the gas.
"We were seeking longer term contracts to help underpin the significant LNG import terminal project investment and there was insufficient interest from potential customers," the company said in emailed comments.
The decision was not unexpected, after the oil giant flagged a retreat from southeastern Australia in September, putting its 50% stake in the Gippsland Basin Joint Venture, the mainstay gas supplier into the region, up for sale.
LNG import Crib Point, Port Kembla, Longford, Outer Harbor, Newcastle,
project Victoria New South Victoria South New South
location Wales Australia Wales
Owner AGL Energy Australian Exxon Venice Energy South
<AGL.AX> Industrial Mobil Corp set up by Korea-based,
Energy (AIE), <XOM.N> private firm private firm
backed by Integrated EPIK,
Andrew Global working with
Forrest's Partners, in Hyundai LNG
Squadron talks with Shipping
Energy with Mitsubishi
Japan's JERA, Corp <8058.T>
Marubeni
<8002.T>
Annual 130-140 PJ 100 PJ Not 80 PJ Could handle
capacity available more than
300 PJ
Model Contract LNG JERA to help Exxon Toll for LNG Toll for LNG
supply, sell secure LNG would traders to traders to
gas to AGL's supply. AEI secure use facility use facility
customers lining up LNG, sell
contracts to gas to
sell gas to existing
industrial customers
customers
Final 2020 No date Decided Late 2019 H1 2020
Investment not to go
Decision ahead
Target H2 FY2022 No date Was 2022 FY2021 2021
start-up
Status State State review Unable to Aim to submit Aim to
environmental of modified line up development secure
review plan sufficient application regulatory
customer April 2019 approval by
interest Q2 2020
Estimated A$250 mln, A$200 mln to Not A$750 mln to US$430 mln,
cost excluding A$250 mln, available A$850 mln, including
cost to excluding includes cost of
charter FSRU charter building a building an
floating cost 500 megawatt FSRU
storage and gas-fired
regasificatio power plant
n unit (FSRU)
Analysts/i Most likely Likely Had been Unlikely Unlikely
ndustry seen as
view on possible
likelihood
of going
ahead
Sources: Projects, Department of Industry, ACCC
* Financial year July 2019-June 2020
(Reporting by Sonali Paul; editing by Richard Pullin and Rashmi Aich)
