Australian Industrial Energy (AIE) has selected Port Kembla as the site for New South Wales’ first LNG import terminal.
The terminal would have the ability to supply in excess of 100 PJ/a, sufficient to meet more than 70 per cent of NSW’s total gas needs.
The LNG import terminal will be named the Port Kembla Gas Terminal (PKGT).
Construction of the terminal is likely to require a capital investment of between $200 million and $300 million, generate around 150 jobs during the construction phase and 40-50 ongoing roles.
The PKGT has received strong support from a wide range of regional business and major industrial and commercial gas customers, and to date, AIE has entered into 12 Memorandums of Understanding for the supply of gas, allowing the AIE consortium to move to the detailed engineering phase of the project.
The consortium comprises Andrew Forrest’s Squadron Energy, global energy infrastructure investor Marubeni Corporation and JERA Co. Inc., the world’s largest buyer of LNG.
“NSW is facing significant challenges in ensuring available and affordable gas supplies and we are working to make this project a reality as quickly as possible,”? said AIE CEO James Baulderstone.
“The world-leading expertise of the AIE partners, now combined with the enthusiasm of NSW Ports and Port Kembla’s regional business community to see this project realised, means AIE is well placed to deliver firm, long term gas on highly competitive pricing and terms as soon as 2020.”?
Port Kembla was chosen after a comprehensive evaluation process looking at port operations, berth configuration options, proximity to the existing east coast gas transmission network and support from the local business community.
With the port selection process now finalised, AIE is targeting the lodgement of relevant planning and development applications within the next few months.
While the LNG import terminal is its first priority, AIE is also investigating the development of an associated gas-fired electricity generation plant, which could play a key role in ensuring adequate long- term electricity supply security and competition for NSW and the wider east coast energy market.
A decision on the potential power plant, its exact location and project timing is currently being assessed.