Australian Industrial Energy (AIE) has been given the go-ahead by the New South Wales Government for the development of a new liquefied natural gas (LNG) import terminal at Port Kembla’s industrial precinct.
The $250 million project will include LNG carrier vessels, a floating storage and regasification unit (FSRU), wharf facilities and a pipeline that will connect the FSRU to the existing east coast gas transport network.
“This terminal will make the State of NSW more self-sufficient when it comes to energy, and will create greater access to the global gas market,” Deputy Premier John Barilaro said.
The Port Kembla Gas Terminal is anticipated to support up to 150 jobs during its construction and about 40-50 ongoing positions once it is operational.
Once the new terminal is up and running, it will be able to produce approximately 100 petajoules of natural gas annually - which is over 70% of the State’s current yearly gas demand - helping reduce the cost and improve security of NSW’s energy supply.
“It could support gas-fired electricity generation in NSW and help make sure we have reliable electricity,” Minister for Energy and Environment Matt Kean said.
The approval granted by the State Government comes with a number of conditions, including construction impact management; managing hazards and risks related to the operations of the terminal; and regulation and monitoring of air and water discharge during construction and operation.
First gas is expected to be delivered to market in late 2020.
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Source: Australian Industrial Energy (1, 2); NSW Government; The Sydney Morning Herald; Illawarra Mercury; ABC News