The project is backed by the world's biggest LNG buyer, JERA of Japan. Gas from this project would be priced at between $8 and $10 a gigajoule, well above prices in expiring contracts of $4-$5, but still below east coast prices of early 2017.
Wood Mackenzie analyst Saul Kavonic said the price of $8-$10/GJ cited for the AIE terminal was only "feasible" assuming LNG prices below $US7 per million British thermal units and assuming the import plant is fully utilised.
"But this won't be sustainable," Mr Kavonic said. "Long-term LNG prices are forecast to rise from early 2020s in order to bring on new supply, indicating LNG imports will deliver domestic gas well above $10 [per gigajoule] for most of next decade."
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