NSW Deputy Premier John Barilaro and Minister for Planning Rob Stokes announced that development consent had been awarded for the $250 million Australian Industrial Energy (AIE) project which will provide gas to the domestic market.
Construction of PKGT will consist of a new berth at Port Kembla to accommodate LNG carriers, a floating LNG handling facility, wharf infrastructure and a pipeline to connect the facility to the state’s existing network of gas infrastructure.
Mr Barilaro said the import terminal would provide a significant boost to the economy.
“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,” he 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.”
With high domestic gas prices troubling industry on the east coast and potential gas shortages looming, Minister for Energy and Environment Matt Kean said the approval was “great news” for those in the state that depend on natural gas.
“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,” he said.
“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.”
The development consent is a big step forward for AIE – a consortium of Squadron Energy, Marubeni Corporation – and a joint venture between Tokyo Electric and Chubu Electric.
Several LNG import terminals are being planned on Australia’s east coast, but AIE could become the first to bring gas to market, with AGL’s Crib Point project facing political opposition in Victoria and EPIK’s Newcastle LNG Project expecting regulatory approvals in 2020.
Squadron Energy CEO Stuart Johnston said the company was pleased with the progress of the development.
“The PKGT 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,” he 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.”
Approximately 150 jobs are expected to be created during construction, with up to 50 ongoing roles to exist once the plant is operational.
Squadron Energy is led by prominent Western Australian businessman and billionaire Andrew Forrest.
For more information visit the AIE website.
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