LNG

FSRU to give AGL ‘bargaining power’ in east Australia

The idea may seem surprising, but a regasification project would help developer AGL in negotiations with upstream suppliers The idea may seem surprising, but a regasification project would help developer AGL in negotiations with upstream suppliers.
By Sally Bogle 17 August 2017 0 27235
The Newcastle gas storage facility in New South Wales. (AGL)

Installing an FSRU on the east coast of Australia may appear surprising, but the project would provide valuable ammunition for developer AGL to negotiate with upstream suppliers, a senior utilities analyst has told Interfax Natural Gas Daily.

David Leitch, formerly with UBS and now principal at consultants ITK, said that the proposed FSRU “has only marginal economics” but “can make sense strategically”.

Leitch said the project would put AGL “firmly back into the gas middleman game, providing competitive bargaining power to upstream suppliers and pipeline owners, and perhaps...