Energy Projects and Infrastructure Korea (EPIK) and South Korean firm Hyundai LNG Shipping have signed an agreement for the development of floating storage regasification unit (FSRU) projects across the globe.

The strategic partnership agreement includes EPIK’s Newcastle LNG FSRU import project at the Port of Newcastle in Australia.

In December, EPIK signed a project development option agreement with Port of Newcastle to commence preliminary works on the proposed LNG FSRU import terminal.

The Newcastle project will include a 170,000m³-class new-build FSRU and associated on-shore infrastructure.

Investment in the project is estimated to be between $400m and $430m.

EPIK founder and managing director Jee Yoon said: “Partnering with Hyundai LNG Shipping marks a key strategic milestone for EPIK, contributing significant expertise and support to the advancement of our flagship Newcastle LNG project.”

Hyundai LNG Shipping operates eight LNG vessels in Korea and carries around 17% of all imported LNG to Korea.

"Partnering with Hyundai LNG Shipping marks a key strategic milestone for EPIK."

Hyundai LNG Shipping president and CEO KyuBong Lee said: “EPIK has identified a significant opportunity for the NSW market with the Newcastle LNG project.

“We are thrilled to be partnering with EPIK at this critical stage of the company’s growth and look forward to building a strong and lasting relationship that will benefit all parties involved.”

EPIK is exploring the possibility of additional gas-related infrastructure, including potential gas-fired power and LNG bunkering facilities.

After receiving regulatory approvals for the project, the company expects to place an order for the FSRU new-build with a shipyard, which is expected to be received early next year.

EPIK develops floating LNG regasification projects in regions where there is a demand for high natural gas.