Golden Beach Energy’s $1 billion (€614.6 million) Golden Beach gas and storage project, based off Gippsland coast, Victoria, Australia, has been placed into voluntary administration following delays to the project’s timelines and a significant escalation in costs.
The move comes about two weeks after the Victorian government granted a licence that would allow a 19 petajoule storage development. The project aimed to provide energy security for Victoria, where shortfalls of gas have been forecast; potentially leading to a greater reliance on Queensland gas or expensive LNG gas imports.
Origin Energy was signed up as secured creditor and offtaker of Golden Beach Energy. It has since appointed FTI Consulting as receivers and managers to determine appropriate next steps. A spokesperson says, ‘Delays to the project’s timetable and a significant escalation in costs have left Golden Beach Energy without sufficient funding to reach a final investment decision.’
Speaking to the Financial Review, Tony Wood, senior fellow at Grattan Institute’s energy programme, says: ‘To describe this as bad news would be an understatement. It turns out that there are big potholes in the road.’
