Port Kembla earmarked for LNG import terminal

Australia’s Port Kembla has been earmarked for an LNG import terminal Photo: NSW Ports Australia’s Port Kembla has been earmarked for an LNG import terminal Photo: NSW Ports

An Australian industrial consortium has earmarked Australia’s Port Kembla as the site to create a competitive LNG gas supply for local industry by 2020.

Australian Industrial Energy Forum (AIE) has signed a MoU signed with NSW Ports providing exclusive rights which will enable it to enter into a detailed engineering design phase for the project.

"For Port Kembla this presents an opportunity for diversification and growth in port activities and the potential for new value-add services,” said NSW Ports CEO, Marika Calfas.

Strategic decision

The terminal could have the ability to supply in excess of 100 PJ per annum, sufficient to meet over 70% of NSW's total gas needs potentially helping to alleviate spiralling energy costs for local businesses, supporters say.

Construction of the Port Kembla Gas Terminal (PKGT) is likely to require a capital investment of between $200m and $300m, but could generate around 150 jobs during the construction phase and 40 to 50 ongoing roles.

The AIE consortium comprises Squadron Energy, global energy infrastructure investor Marubeni Corporation and JERA Co Inc, one of the largest buyers of LNG.

Up until now, NSW has relied on other Australian states for virtually all of the natural gas required to power its industries and domestic needs.

Supporters say that the Port Kembla Gas Terminal is a comparatively low-cost and speedy alternative to the construction of far more expensive new inter-state or cross-country pipelines to transport gas to NSW and the wider eastern seaboard.

A decision on the potential power plant, its exact location and project timing is currently being assessed.


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