AGL Energy says it will press ahead with Australia’s first LNG import plant to help fill a forecast gas supply squeeze on the east coast.
The Australian is reporting that despite delays, AGL says the case for constructing the Crib Point project in Victoria remains robust.
The company cites a lack of gas discoveries in the state’s once prolific Bass Strait, moratoriums on onshore development and projections of tight supply on the eastern seaboard.
“All the forecasting is saying gas on the east coast is going to go into shortage over the next few years,” AGL chief executive Brett Redman said recently, citing Australian Energy Market Operator data.
“We’re not seeing development coming on quickly and the new drilling going on in the Bass Strait is coming up dry so we’re not seeing big, new reserves necessarily poised to enter the market.”