Lockton, the world’s largest privately owned insurance brokerage, has advised Marinus Link Pty Ltd (MLPL) in relation to its contract with Italian-owned cable manufacturing company, Prysmian. This involved the procurement of a 750-megawatt High-Voltage Direct Current (HVDC) subsea and land cable for the Marinus Link interconnector between North West Tasmania and the Latrobe Valley in Victoria (the project).
As insurance advisor and broker for the wider Marinus Link project, Lockton provided advice on insurable and non-insurable risks, identifying the parties who were best placed to assume and/or insure these risks, taking into account project finance needs.
After securing the converter equipment supply with Hitachi earlier in May, Lockton project lead Antony Meakin commented that the latest deal is another major milestone for the Marinus Link project.
“We are pushing insurers for a comprehensive solution that addresses the project, their lenders and the contractor’s insurance needs,” said Mr Meakin.
Insurance plays a critical role in underpinning major energy and infrastructure projects, especially those subject to project finance.
An insurance team vastly experienced in major projects has been assembled by Lockton with on-the-ground experts seamlessly working together alongside colleagues from across the globe in locations such as London.
“Negotiating the risk allocation between contractor and owner is particularly challenging in the submarine cable supply space due to the small number of cable suppliers for DC technology of this size, the current high demand for power cables and the overbooked manufacturing space, next to others. Early engagement, expert insurance advice regarding the risks under contract and tailoring the eventual insurance policies to the agreed risk allocation is paramount for these projects,” said David Vajnai, Lockton Global Energy & Power – Offshore Projects.
"Many congratulations to the Marinus Link project and Prysmian for the landmark signing of the cables supply contract. Lockton is proud to be part of the wider Marinus Link team for this project essential to Australia’s future. We eagerly look forward to seeing the project come to life and are working full steam ahead with the insurances,” concluded Mr Vajnai.
Lockton retains a critical objective to deliver a bankable insurance program that underpins the risk and risk financing needs of the Marinus Link project. This support extends through to the commercial operations which are anticipated towards the end of the decade.
About Marinus Link
Marinus Link is a proposed undersea and underground electricity and data interconnector between North West Tasmania and the Latrobe Valley in Victoria.
The project includes high voltage direct current (HVDC) cables, fibre optic cables, a communications station, and converter stations at each end. Marinus Link will improve the connection between Tasmania and the national grid.
Marinus Link’s 1500-megawatt (MW) capacity is equal to the power supply for 1.5 million Australian homes and approximately three times the capacity of the existing Tasmania to Victoria interconnector, Basslink.
Marinus Link Pty Ltd (MLPL) is jointly owned by the Australian, Tasmanian and Victorian governments. MLPL is responsible for progressing the Marinus Link interconnector project.
About Lockton
Lockton's private ownership empowers its 11,700+ Associates doing business in over 140 countries to focus solely on clients' risk, insurance and people needs. With expertise that reaches around the globe, Lockton delivers the deep understanding needed to accomplish remarkable results.
Lockton is a Great Place to Work® certified business and recognised as one of Australia’s best workplaces for women by the global authority on workplace culture.
Contents of this publication are provided for general information only. It is not intended to be interpreted as advice on which you should rely and may not necessarily be suitable for you. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. Lockton arranges the insurance and is not the insurer. Any insurance cover is subject to the terms, conditions and exclusions of the policy. For full details refer to the specific policy wordings and/or Product Disclosure Statements available from Lockton on request.