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NEWCASTLE, Australia (11 November 2020) – EPIK Co. Ltd. (EPIK), a liquefied natural gas (LNG) project development company responsible for the NSW Government-declared “Critical” Newcastle GasDock LNG import terminal, announced today that it plans to include LNG bunkering services as part of its development supporting the maritime industry in its shift towards cleaner burning marine fuel. “The addition of LNG bunkering is a logical extension of the Newcastle GasDock project and will allow our customers to take advantage of LNG’s demonstrated environmental benefits, helping to reduce carbon emissions globally and dramatically reducing marine emissions locally,” said EPIK Managing Director, Jee Yoon. “Given the Port of Newcastle’s considerable industrial marine traffic and proximity to Sydney, our project provides an ideal platform to add LNG bunkering operations.” EPIK’s Newcastle GasDock project provides a strong foundation for an LNG bunkering business on Australia’s East Coast, requiring limited additional infrastructure, and would be a first for the region. The Port of Newcastle, which welcomes more than 2,000 ship visits each year, and other nearby ports including Sydney represent high-potential LNG bunker fuel markets, with steady and significant marine traffic. The cruise industry in particular has distinguished itself as a major early adopter of LNG as a marine fuel and EPIK expects that the Sydney Harbour cruise sector, with over 300 annual cruise ship port calls, could require more than a quarter of a million tons of LNG annually over the coming years. Similarly, bulk carriers, which make up a significant portion of Port of Newcastle marine traffic, could generate considerable new demand for LNG bunker fuel in the region over the coming years. Recent announcements by major international shipping companies operating in ports across Australia and around the world further demonstrate the enthusiasm for LNG. Of the available alternative marine fuels, LNG is increasingly seen as the fuel of choice due to its substantial environmental and cost advantages. The introduction of IMO 2020 regulations limiting sulphur content down from 3.5% m/m (mass by mass) to less than 0.5% m/m, among other factors, is driving more rapid adoption of cleaner marine fuel systems. Further, certain designated Emission Control Areas (ECAs) require the sulphur content to be below 0.1% m/m, making it harder and more costly for traditional low-sulphur marine fuel to comply. While Australian coastal waters are not currently classified as an ECA, some analysts anticipate a future ECA designation, which will require many shippers to invest in cleaner fueling systems in order to comply. The Newcastle GasDock project would provide the necessary infrastructure to provide shippers with competitive, clean-burning LNG. ### About Newcastle GasDock
The Newcastle GasDock project is a proposed LNG import terminal at the Port of Newcastle, NSW, providing Australia’s east coast with a low-cost infrastructure solution for the flexible, secure, and competitive supply of natural gas on a long-term basis. NSW currently relies on interstate imports for approximately 95% of its gas supply and recent changes in the domestic market have resulted in significant market volatility, negatively impacting industry and households across the State. “The Newcastle GasDock terminal is well positioned to provide competitive and flexible energy resources to Australia, right when it needs it, helping to stimulate the regional economy while maintaining a small project footprint and minimizing its environmental impact,” Yoon said. EPIK’s chosen terminal infrastructure provides a flexible solution that will be capable of supplying more than twice NSW’s current annual gas consumption, with actual volumes being driven by demand rather than limited by infrastructure constraints, allowing for significant growth and long-term flexibility as the market requires. By utilizing a floating storage and regasification unit (FSRU), the project is able to maintain a small project footprint with minimal environmental impact and can be delivered in a timeframe that meets the needs of the market. LNG imports through the Newcastle GasDock terminal provides Australian customers access to the global market, allowing it to take advantage of reverse seasonal LNG pricing, meaning that Australian high-demand periods coincide with low global demand, which translates into lower priced LNG for Australian east coast customers. Because of EPIK’s differentiated tolling model, the Newcastle GasDock project is uniquely capable of facilitating access to this lower priced LNG. In August 2019, the Newcastle GasDock project was declared “Critical” State Significant Infrastructure (CSSI) for social, economic and environmental reasons, and in recognition of the project’s distinctive ability to address the enduring systemic challenges facing the domestic gas market by facilitating access to new, competitive natural gas supplies, diversifying supply and securing access to the global market. The Newcastle GasDock project has been tailored to meet the needs of the market and given the pace of tightening domestic supply, timing of existing contract roll-off, and volumes necessary to satisfy new demand, the company anticipates operations commencing in line with market requirements ahead of the peak winter 2023 demand period. Relevant engineering and environmental works are ongoing in support of this timeline. About EPIK Co. Ltd. EPIK is an LNG project development company focused on originating and developing FSRU project opportunities across the globe, including its flagship Newcastle GasDock LNG terminal project at the Port of Newcastle, NSW. With LNG increasingly becoming the fuel of choice in today’s environmentally conscious market, global LNG trade is at an all-time high, and with continued positive market growth projections spanning well into the 2030s, EPIK specializes in the origination and development of floating LNG regasification projects in regions with high natural gas demand. EPIK’s Newcastle GasDock project, critical to NSW’s future security and reliability of gas supply, is being developed by wholly-owned EPIK subsidiary Newcastle GasDock Company Pty. Ltd. and is proposed to include a 170,000m3 class FSRU and associated on-shore infrastructure. For more, visit www.epiklng.com Contact James Markham-Hill, Executive Director, Corporate Strategy US: +1-713-876-3500 media@epiklng.com ![]()
SYDNEY, Australia (6 November 2019) – EPIK Co. Ltd. (EPIK), a liquefied natural gas (LNG) project development company, announced today that it has appointed Australia and New Zealand Banking Group Limited (ANZ) to serve as financial adviser for its Newcastle GasDock LNG import terminal.
ANZ will provide debt and equity advisory services for EPIK’s flagship FSRU project at the Port of Newcastle in New South Wales (NSW) in the lead up to a Final Investment Decision (FID), anticipated in mid-2020. “We are pleased to be partnering with EPIK as financial adviser in the development of this critical infrastructure project, which is uniquely positioned to provide competitive gas supply to the region,” said Ian Wainwright, ANZ Executive Director. In August, the Government of New South Wales declared EPIK’s Newcastle GasDock LNG import terminal project as Critical State Significant Infrastructure (CSSI), recognizing the project for its vital role in providing long-term energy and gas security to the region. “ANZ adds tremendous financial and advisory expertise to the Newcastle GasDock project as we continue to make significant commercial and regulatory progress,” said Jee Yoon, EPIK’s Managing Director. “We have confidence that with ANZ’s assistance we will be able to secure optimal capital resources for the project, allowing us to provide the most competitive supply to the region.” NSW currently relies on interstate imports for approximately 95% of its gas supply and recent changes in the domestic market have resulted in significant market volatility and price increases, negatively impacting industry and households across the State. As proposed, the Newcastle GasDock terminal will be capable of supplying more than 80% of NSW’s current gas demand, with the potential to increase throughput as demand requires. In addition to EPIK’s recent engagement with ANZ, the Newcastle GasDock project is supported by leading advisers and consultants, including environmental and planning support from Arup, engineering, design and construction services from Australian EPC firm, Watpac, as well as legal and regulatory counsel from K&L Gates, among others. ### About EPIK Co. Ltd. EPIK is an LNG project development company focused on originating and developing FSRU project opportunities across the globe, including its flagship Newcastle GasDock LNG terminal project at the Port of Newcastle, NSW. With LNG increasingly becoming the fuel of choice in today’s environmentally conscious market, global LNG trade is at an all-time high, and with continued positive market growth projections spanning well into the 2030s, EPIK specializes in the origination and development of floating LNG regasification projects in regions with high natural gas demand. EPIK’s Newcastle GasDock project, critical to NSW’s future security and reliability of gas supply, is being developed by wholly-owned EPIK subsidiary Newcastle GasDock Company Pty. Ltd. and is proposed to include a 170,000m3 class FSRU and associated on-shore infrastructure. For more, visit www.epiklng.com Contact James Markham-Hill, Executive Director, Corporate Strategy US: +1-713-876-3500 media@epiklng.com ![]()
Download a copy or view the official Ministerial media release online at at the NSW Planning website at https://www.planning.nsw.gov.au/News/2019/Newcastle-gas-terminal-given-critical-status
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SYDNEY, Australia (14 August 2019) – EPIK Co. Ltd. (EPIK), a liquefied natural gas (LNG) project development company, announced today that the Government of New South Wales (NSW) has declared EPIK’s Newcastle GasDock LNG import terminal project as Critical State Significant Infrastructure (CSSI), recognizing the project for its crucial role in the long-term economic future of the region and representing a major milestone for the project. The Newcastle GasDock project, to be located at the Port of Newcastle – an industrial hub home to major gas and power users – is ideally suited to provide competitive gas supply to users in the Hunter Valley as well as the broader NSW region, fueling economic growth while driving prices down for all. “We are thrilled by the NSW Government’s decision to award CSSI status to the Newcastle GasDock project,” said Jee Yoon, EPIK’s Founder and Managing Director. “EPIK’s primary objective is to deliver the most competitive infrastructure solution for natural gas imports into NSW. With CSSI status in hand, we are a considerable step closer to delivering the critical infrastructure needed to bring new energy to NSW, providing access to long-term, competitive gas supply to the region, safely powering our homes, driving industry forward and keeping prices low for everyone to enjoy.” The Newcastle GasDock terminal will be capable of supplying more than 80% of NSW’s current gas demand, with the potential to increase throughput as demand requires. Existing domestic gas supply and pipeline constraints compound the need for the Newcastle GasDock terminal in NSW, which currently imports approximately 95% of its current gas consumption at considerable expense from other States. Port of Newcastle CEO Craig Carmody said, “We welcome the NSW Government’s support for this important project, which will provide reliable and competitive energy for the Hunter as the region diversifies its economy. Port of Newcastle has been a global trade gateway for more than 220 years and is proud to be diversifying its role as Australia’s leading energy port. Newcastle has much to offer, including a deepwater shipping channel operating at 50% of its capacity, significant port land available and enviable access to national infrastructure such as rail and road. It is pleasing to see EPIK poised to take advantage of the benefits of locating its critical State significant infrastructure project at Port of Newcastle.” CSSI designation is awarded to projects that are deemed to be essential to the State for economic, environmental and social reasons, and sets out a clear pathway to planning approvals, providing greater timeline certainty. Subject to receiving all regulatory and planning approvals, the project is anticipated to begin operations in the first half of 2021 and represents a potential direct investment of approximately AUD$250M in NSW in addition to the value of the FSRU to be utilized by the project. Natural gas remains a crucial baseload provider of electricity in the energy mix; especially as NSW transitions away from coal to a lower-carbon economy. As recently as March 2019, the Australian Energy Market Operator (AEMO) in its Gas Statement of Opportunities reaffirmed its position that without greater diversification, insufficient gas supply would pose a significant challenge to the region. “We look forward to continuing discussions with major gas and power users throughout the State as they seek long-term, competitive solutions to their gas supply and power needs,” said EPIK Executive Director, James Markham-Hill. “We greatly appreciate the support of the NSW Government as we work together, in consultation with the local community, relevant stakeholders, as well as industrial and commercial users, to bring the project to fruition.” In July, EPIK announced that it had engaged industry-leading energy consulting experts, Wood Mackenzie, to conduct a comprehensive analysis of the southeast Australian gas market in parallel with EPIK’s commercial efforts seeking terminal capacity subscribers. EPIK will make a summary of the Wood Mackenzie market analysis available to qualified 3rd parties that sign a non-disclosure agreement and submit an expression of interest in taking capacity at the proposed Newcastle GasDock terminal. More information can be found on its website at epiklng.com. ### About EPIK Co. Ltd. EPIK is an LNG project development company focused on originating and developing FSRU project opportunities across the globe, including its flagship Newcastle GasDock LNG terminal project at the Port of Newcastle, NSW. With LNG increasingly becoming the fuel of choice in today’s environmentally conscious market, global LNG trade is at an all-time high, and with continued positive market growth projections spanning well into the 2030s, EPIK specializes in the origination and development of floating LNG regasification projects in regions with high natural gas demand. EPIK’s Newcastle GasDock project, critical to NSW’s future security and reliability of gas supply, is being developed by wholly-owned EPIK subsidiary Newcastle GasDock Company Pty. Ltd. and is proposed to include a 170,000m3 class FSRU and associated on-shore infrastructure. For more, visit www.epiklng.com Contact James Markham-Hill, Executive Director, Corporate Strategy US: +1-713-876-3500 media@epiklng.com ![]()
SEOUL, South Korea (24 July 2019) – EPIK Co. Ltd. (EPIK), developer of the Newcastle GasDock LNG terminal in New South Wales, Australia, announced today that it has engaged industry-leading energy consulting experts, Wood Mackenzie, to conduct a comprehensive analysis of the southeast Australian gas market in parallel with EPIK’s commercial efforts seeking terminal capacity subscribers. EPIK will make a summary of the Wood Mackenzie market analysis available to qualified 3rd parties that sign a non-disclosure agreement and submit an expression of interest in taking capacity at the proposed Newcastle GasDock terminal.
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