The share price of AGL Energy Ltd (ASX: AGL) will be on watch today as it announced an update on its Crib Point gas import project in Victoria.
AGL is one of Australia’s largest electricity generation portfolio owners and operators and the largest ASX-listed investor in renewable energy. As of 2018, AGL had more than 3.6 million customer accounts.
AGL’s Crib Point Gas Import Project
This morning AGL said that it expects the first gas to be delivered from its proposed AGL Gas Import Jetty at Crib Point in Victoria in the second half of FY22. The problem is that is that AGL had previously indicated that the first gas could be delivered during FY21.
The confirmation of this timetable follows AGL’s decision this week to select the ‘Hoegh Esperanza’ as the floating storage and regasification unit (FSRU) for the Crib Point project. AGL had previously said it was going to use the Hoegh Giant which it had communicated during December 2018.
AGL thinks that the Esperanza better fits “the timing and and operational requirements arising from the Environment Effects Statement (EES) process currently being undertaken by the Victorian Government. The only issue is that the Hoegh Esperanza has a later delivery window than the Hoegh Giant.
The energy company thinks the outcome of the EES to finish no earlier than late FY20 which is when AGL expects to reach a final investment decision on the Crib Point project.
The AGL share price has actually risen by 0.4% in early trade, so clearly investors aren’t too concerned by this news.
These days I’m not sure that energy companies are great investments. They require large amounts of capital to build power plants, have a lot of regulation, can’t raise prices too much and face competition from home-installed solar panels.
I think there are better options for defensive investors such as the reliable ASX shares in the free report below.
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