Victoria passes gas project despite discomfort with LNG; info leak at privacy lecture
Worse than North Korea it might be, according to Santos boss Kevin Gallagher, but the Victorian government has finally ticked off on a new gas project.
Not the onshore drilling the big gas companies have long wanted Victorian premier Jacinta Allan – and her predecessors – to approve.
But Viva Energy’s plans to build a gas import terminal at its old Geelong refinery.
The decision – originally expected in April – comes just in time to throw a new twist into the race to deliver Australian-produced LNG back into the country via ships rather than through a pipeline from the actual gas fields.
Only in Australia could the lack of government forethought – added to the intractable self-interest of gas exporters – have led to this outcome rather than, for example, a domestic gas reservation set when the projects were originally approved.
But the Viva approval comes only a few weeks after Andrew Forrest’s Squadron Energy confirmed a delay to its plans to import LNG to its Port Kembla facility – already built and ready to go.
Viva’s proposed facility is far bigger than Squadron’s, enough to comfortably supply looming gas shortfalls caused by the decline of the Bass Strait fields that have fuelled the east coast’s domestic economy for decades.
There is probably really only room in the market for one gas import terminal on the east coast. But which one?
Viva’s Geelong approval sets the stage for a proper backroom brawl over which it will be.
Both Squadron and Viva will now need to convince both gas exporters and buyers that they will be the last terminal standing, in order to land the long term contracts needed to make their facilities commercially viable.
Size and scale is Viva’s best argument now that approvals are dealt with.
The essential bit of kit required is a floating storage regasification unit (FSRU) – a ship that turns LNG into pipeline gas without anything blowing up.
They cost about $US300m to build, there are only 51 in the world, and they’re in high demand. Squadron has one under contract. Visa, as yet, does not. That’s the new point of difference.
Squadron delayed imports at Port Kembla by a year essentially because it believes will make by leaving its FSRU in Egypt next year, rather than bringing it down to NSW
Asked whether the Viva approval threatens the financial viability at Port Kembla, that’s the point Squadron boss Rob Wheals was keen to make.
“Port Kembla Energy Terminal (PKET) has completed construction and is the only facility in Australia that will be ready in time to address the gas shortfalls forecast by AEMO in 2027-28,” he said.
“It is also the only regasification terminal which has a contract with one of the 51 FSRUs at a time when FSRUs are in high demand and short supply in the world. NE
Let the games begin.
A breach of privacy?
“Serious Invasions of Privacy” was the title given to a legal seminar hosted by Sydney’s Level 22 Chambers on Wednesday night. The panel of speakers included Professor David Rolph and noted barristers Dauid Sibtain SC, Matt Lewis SC, Monique Cowden, Tim Senior and Dr Amanda Sapienza, all of whom are well-schooled on matters of privacy and the latest statutory tort made into law in December.
They were gathered to talk about that. Ironic, then, that the full list of attendees was mistakenly leaked by Level 22’s clerk of chambers, Jackie Charles, just a few hours prior to the event.
Not only their names but their email addresses, all of which was sent to us – and presumably we now have a taste of Level 22’s client list, too. Does any of this count as reckless intrusion under the newly-inked legislation? The panel was quiet on that point.
Identities revealed were ABC lawyers Annabelle Quist and Elizabeth Beal, Nine’s executive counsel Zoe Bateman, Helen Maamary and Nicholas Betts from the NSW Crown Solicitor’s Office, defamation lawyer Rebekah Giles and a few of her people at Giles George, plus Victoria-Jane Otavski, founder of BlackBay lawyers, fresh from purging a couple of Jew-haters from her firm.
Charles, for the record, issued an apology over the “inadvertent sharing of email addresses”, telling everyone concerned that it “was the result of human error” and encouraging them all to delete the list of names. Which no one did. YB
‘Meating’ of minds
Speaking of lawyers, more than a couple were spotted at the 18-footers boozery in Sydney’s Double Bay over the weekend for Daniel Crennan’s birthday party, the former ASIC deputy now approaching 53, by our calculations. He wouldn’t confirm or deny it.
Unmissable was Justice Michael Lee, an old friend of the Crennan family; he turns up to raise a glass each year. But this time almost head swivelled when who else but Clive Palmer strode into the venue and pounded the hardwood floors with wife Anna.
Crennan told us that he and Palmer are chummy through a mutual business affiliation. TV presenter Deborah Hutton was seen enjoying a chat with the Trumpet of Patriots founder, as was MA Financial’s John Kolenda, who got some time with the billionaire to discuss their appreciation of superyachts. Both of them are well-known tub-owners.
Crennan’s no fan of speeches so he opted for a meat tray raffle. There were two this year. The first was won by Richard Carleton, CEO of the Canadian Securities Exchange. We’re not sure what he did with the meat, given he was due to fly out to Toronto, but it’s possible that he handed it all off to Max Cunningham, CEO of the National Stock Exchange, who brought him to the party.
Former CNN correspondent Peter Ford, attending with wife Sally Loane, long-serving chair of Destination NSW, picked up the second tray.
Melbourne barrister (and Crennan mentor) James Peters KC flew up for the party, as did Matthew Hooper SC, and sighted, too, was former ASIC corporate affairs chief Matthew Abbott, now a GM at Latitude Financial, and former government relations manager Mary Andrew, now at CBA – two people whom Crennan clearly doesn’t despise from his time at ASIC. YB
Mayor’s pitch
The other notable sighting was Melbourne Lord Mayor Nick Reece swaggering into Governor Macquarie Tower on Thursday for an event with about 30 of Sydney’s corporate leaders.
Chatham House rules for the occasion, of course, so it was all hush-hush. But what’s odd is that it was put on by Business Sydney’s Paul Nicolaou, with Reece given space to talk about … Melbourne as a place to do business! The treachery. Hath you forgotten about Sydney, Paul? Hide not thy poison with such sugar’d words!
We’d call this a brazen encroachment on Clover Moore’s turf, too, but apparently Reece later met with the Sydney Lord Mayor for talks that everyone’s telling us were a non-event.
Reece has another full day of meetings with City of Sydney council representatives on Friday for purposes unknown.
But, again, nothing to see here. YB
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