Herbert Smith Freehills has advised Australian Industrial Energyon the land arrangements for Australia’s first liquefied natural gas import terminal at Port Kembla in New South Wales.
AIE has entered into a long term agreement for lease with NSW Ports to construct and operate a gas terminal and pipeline at Port Kembla with an estimated capital cost of A$250 million. The construction phase will see the creation of between 130 and 150 jobs and between 40 and 50 ongoing roles during operation.
The deal also involved a complex tripartite negotiation with the existing tenant to ensure delivery of a vacant, remediated site with separate utility services which will enable both sites to function independently.
AIE is now 100% owned within the Squadron Energy group, which is part of one of Australia’s largest private investment groups, Tattarang, owned by Australian businessman and philanthropist Andrew Forrest and his family.
The project is the first of its kind in Australia and will involve the delivery of LNG to Port Kembla where it will be loaded in liquid form onto a floating storage and regasification unit (FSRU). The LNG will then be stored and, when needed, converted to gas on board the FSRU and then inputted, via pipeline, to the NSW gas transmission network.
The Herbert Smith Freehills team was led by partner Nicholas Cowie (Picture), assisted by senior associates Japonica Sheridan and Max Wu and associate Allison Cavanagh.
Law Firms: Herbert Smith Freehills;
Clients: Australian Industrial Energy;