Andrew Forrest-backed Squadron Energy has appointed Spain's Reganosa Servicios to operate and maintain the onshore facilities at its Port Kembla Energy Terminal, cementing operational control ahead of first gas early in the new year.
The five-year contract, with options to extend for a further three years, is Reganosa's first entry into the Australian market. Squadron said the appointment would generate regional jobs and move the long-planned regasification terminal deeper into its delivery phase.
Squadron executive general manager of operations Stuart Davis said the deal reinforced Port Kembla as the most credible near-term solution to the east coast's looming gas shortfall.
"This partnership with Reganosa is a significant milestone for Australia's energy future," Davis said.
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"By combining global LNG expertise with local capability, we are strengthening domestic gas supply and energy security while supporting the energy transition without locking in decades of new upstream emissions."
Reganosa will operate the onshore systems, including the metering station, control room, and infrastructure for berthing and gas transfer. The project features a new 12-kilometre pipeline connecting to the Eastern Gas Pipeline. At full capacity, the terminal can meet up to 70% of peak east coast gas demand.
East coast energy emergency
The appointment lands amid growing concern over declining Bass Strait reserves, warnings of a structural supply gap opening later this decade and intensifying political pressure to fast-track LNG imports. Industry forecasts point to a material east coast shortfall emerging by 2028 without new supply or import capacity.
The Port Kembla deal also sharpens the contrast with Viva Energy, which recently pushed the FID for its Geelong LNG import terminal back to 2027. By comparison, Squadron's operator appointment signals a shift from concept risk to execution at Port Kembla.
With coal exits accelerating and domestic gas production in decline, LNG imports are rapidly emerging as a central plank of Australia's east coast gas security strategy.
"The terminal is the only solution to decades-long east coast gas shortfalls, which have put significant cost pressures on households and businesses," Davis said,
