The NSW Government has given development consent for the $250 million Port Kembla Gas Terminal (PKGT) project.
Australian Industrial Energy (AIE), will construct a new berth at Port Kembla to accommodate Liquefied Natural Gas (LNG) carriers, a floating LNG handling facility, wharf infrastructure and a pipeline to connect to the existing NSW east coast gas network nearby.
As well as providing a new source of gas for the state, the PKGT is expected to create up to 150 jobs during construction and around 40-50 ongoing roles during operation.
Squadron Energy CEO, Stuart Johnston, said his company was proud to be involved in the development.
“The Port Kembla Gas Terminal presents a real opportunity for NSW to take control of its gas supply challenges by introducing significant new and competitively priced supply directly into the heart of the Illawarra industrial region,” Mr Johnston said.
“We are extremely pleased to obtain the development consent. It paves the way for us to now focus on closing commercial negotiations with customers, which in turn will enable the project to take a positive Final Investment Decision around the middle of the year.”
In June 2018, the NSW Government declared the proposal a Critical State Significant Infrastructure (CSSI) because of its importance to NSW’s future security and reliability of gas supply.
The Department of Planning and Environment (DPE) assessed the proposal, taking into account environmental, social and economic impacts, all community and stakeholder submissions received during exhibition, and advice from government and independent experts.
The approval includes conditions to:
- Manage impacts during the construction of the import terminal, including excavation and dredging activities in Port Kembla harbour and management of contaminated materials and acid sulphate soils
- Manage hazards and risks associated with the operation of the LNG import facility and gas pipeline
- Regulate and monitor air and water discharges from the project during construction and operations
NSW Deputy Premier, John Barilaro, said this gas terminal will not only be a major boost for the local economy in Port Kembla and surrounds, but will also help to drive down the cost of living across NSW.
“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,” Mr Barilaro said.
“Cost of living is a huge burden on households across this state, and today’s announcement is another step towards easing that burden by potentially lowering household gas bills in the future.”
Minister for Planning, Rob Stokes, said NSW currently relies on interstate sources for 95 per cent of its gas supply and this important project will help achieve energy security into the future.
“This important project was granted Critical State Significant Infrastructure (CSSI) status last year and the Department of Planning and Environment (DPE) has worked hard to progress a rigorous but timely assessment,” Mr Stokes said.
“The project will enhance gas supply capacity — relieving gas price pressure for families and businesses across the state.”
Minister for Energy and Environment, Matt Kean, said the Port Kembla Gas Terminal would be a game-changer for improving energy security and helping ease energy costs.
“The approval for the Port Kembla Gas Terminal is great news for more than 33,000 NSW businesses and a million households that already depend on natural gas,” Mr Kean said.
“This terminal could supply 70 per cent of our state’s annual gas demand and help ease the cost of energy bills for NSW families and small business owners.
“It could support gas-fired electricity generation in NSW and help make sure we have reliable electricity even when the sun isn’t shining and the wind isn’t blowing.”
Member for Kiama, Gareth Ward, said the terminal would be a major economic boost for the local economy, with the creation of 150 jobs during construction and up to 50 ongoing roles, once the plant is operational.
“It also supports diversification, future growth and employment in Port Kembla and the Illawarra-Shoalhaven region, in line with the NSW Government’s strategic plans for these areas,” he said.