AIE selects site for LNG import terminal in NSW

The Australian-led consortium, Australian Industrial Energy (AIE), selected Port Kembla as the site for NSW’s first liquefied natural gas (LNG) import terminal.

The facility to be named the Port Kembla Gas Terminal would have the ability to supply in excess of 100PJ per annum, sufficient to meet over 70 percent of NSW’s total gas needs.

Construction of the terminal is likely to require a capital investment of between $200m and $300 million, AIE said in a statement.

The consortium, comprising Australia’s Squadron Energy and Japan’s Marubeni and Jera, said the facility will provide increased certainty of affordable gas supply to New South Wales.

AIE has to date entered into 12 memorandums of understanding (MoU’s) for the supply of gas, providing the consortium confidence to move to the detailed engineering phase of the project.

With the port selection process now finalized, 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.