Epik and Port of Newcastle to jointly develop LNG FSRU import terminal

South Korea-based Epik has entered into a project development option agreement with Port of Newcastle, Australia, to commence preliminary works on a proposed LNG floating storage and regasification unit (FSRU) import terminal.

The project, named Newcastle LNG, will be sited within the Port of Newcastle to serve the New South Wales gas market.

The potential investment for the Newcastle LNG project is estimated to be between US$400 million and US$430 million, which will include a 170,000-cubic-metre newbuild FSRU and associated on-shore infrastructure.

Epik expects to place an order for the FSRU newbuild with a shipyard subject to receiving regulatory approvals for the project.