Squadron Energy has declared its Port Kembla Energy Terminal the "only solution" to the persistent gas supply shortages plaguing Australia's East Coast. The company's executive general manager of operations, Stuart Davis, made the statement as the firm appointed a Spanish operator to run the facility's onshore infrastructure.
A Timely Solution for a Pressing Crisis
The terminal, which will import liquefied natural gas (LNG) by ship, regasify it, and feed it into the domestic pipeline network, is officially scheduled to begin operations in 2028. However, Squadron has indicated the project could be brought online as early as 2027 if required to address urgent market needs.
Mr Davis argued that the import terminal provides a critical answer to a problem decades in the making. "The terminal is the only solution to decades-long East Coast gas shortfalls, which has put significant cost pressures on households and businesses," he said.
Boosting Security Without New Drilling
A key benefit of the Port Kembla plan, according to Squadron, is that it would reduce the necessity for developing new gas fields. Mr Davis stated the project would "strengthen domestic gas supply, enhance energy security, and support Australia's energy transition without the need for new gas fields that lock in emissions for decades to come."
The announcement comes as the federal government prepares to unveil a long-awaited gas reservation policy. This move has been strongly advocated by major industrial users like BlueScope Steel, whose CEO Mark Vassella has warned that soaring gas prices pose an existential threat to the Port Kembla-based manufacturer.
Global Expertise for Local Infrastructure
This week, Squadron Energy confirmed it has contracted Spanish firm Reganosa Servicios to operate and maintain the terminal's onshore facilities. These include the control room, measurement station, docking equipment, and gas transfer systems.
Reganosa's chief operating officer, Miguel Angel Florez, said the deal aligned with his company's international growth plans. "Our experience in Asia and our adaptable operating model have enabled us to enter the Australian market and contribute to the region's energy security," Mr Florez remarked.
The Port Kembla Energy Terminal is positioned to become a pivotal piece of infrastructure in the national energy puzzle, aiming to alleviate price pressures driven by large-scale LNG exports and provide a more flexible supply during the transition to renewables.
