Australian LNG terminal gets green light to avert looming gas crisis

Australian energy infrastructure player Viva Energy has received the environmental permit for its proposed liquefied natural gas (LNG) terminal project in Geelong, Australia.

Thanks to the positive assessment on the environment effects statement (EES) from Australia’s Victoria State Government and Planning Minister Sonya Kilkenny, Viva can proceed with its LNG terminal project, subject to certain conditions. The terminal is expected to play a crucial role in ensuring the stability of gas supply in south-eastern Australia.

The new infrastructure entails an extension to Geelong refinery jetty, a permanently moored floating storage and regasification unit (FSRU), and a seven-kilometer pipeline connecting it to the state’s gas main. Three kilometers of the pipeline are planned to be located on the pier and refinery land, and four underground and within existing pipeline corridors. 

Viva Energy’s gas terminal would have the capacity to supply over 120 petajoules of gas per year and introduce a peak supply of up to 750 terajoules per day to meet the daily and seasonal gas demands of Victoria and southern Australia.

According to the Australian player, the terminal will enable the Victorian market to connect to what it says are significant supply sources in northern Australia, boosting energy security. It is also projected to unlock a pathway to bring LNG from Australian gas fields or abroad, effectively acting as a virtual pipeline. 

“Viva Energy’s gas terminal in Geelong is a transformative development for Victoria’s energy landscape, which will ensure a secure, flexible, and cost-effective gas supply, supporting renewable energy generation, and contributing to the economic well-being of Australia,” said Viva Energy Chief Strategy Officer Lachlan Pfeiffer.

“One of the key advantages of our LNG terminal is its flexibility to scale up supply during periods of peak gas demand, ensuring that households and businesses in Victoria will have a reliable gas supply all year round. In addition, we expect the LNG terminal will be called on to supply gas for gas-powered electricity generation, providing important firming capacity to support the renewable energy sector as coal retires from the energy system.”

Pfeiffer added that his company would now work to lock in large-scale gas market participants in order to firm up the business case for a final investment decision (FID) on the project. According to him, timing is of the essence as the LNG terminal also aims to meet the expected gas shortfall, forecast to impact Victoria from 2028.

“We are working closely with potential off-takers and counterparties to secure the commercial structure of the terminal. With construction likely to commence in the second half of 2026, with the majority of works in 2027, various capital and commercial structures are being assessed.”

Viva sees the future gas terminal as an important component of its Viva Energy Hub, which incorporates the Geelong refinery, strategic fuel storage, a green hydrogen refuelling station, and has plans for co-processing low-carbon liquid fuels.

Since the Geelong refinery supplies more than 50% of Victoria’s fuel needs, and the gas terminal’s capacity will be enough to supply more than 60% of the State’s gas needs, Viva believes the Energy Hub will become a gateway to deliver Victoria’s energy requirements, a driver of the economy and a center for high-skilled jobs in the energy sector.

This follows April’s announcement that the Australian player hired Poten & Partners to obtain expressions of interest from the global maritime industry to supply an existing FSRU or retrofit an LNG carrier into an FSRU for the terminal.