Port Kembla Will Be the Site for Future LNG Import Terminal

Australian Port Kembla has been selected by consortium Australian Industrial Energy (AIE) as the site for NSW’s first liquefied natural gas (LNG) import terminal.

A memorandum of understanding (MOU) was signed with NSW Ports enabling AIE to enter into the engineering and design phase of the project.

“Today we are pleased to announce the signing of an exclusive MOU with AIE to take the development of NSW’s first ever LNG import terminal forward. For Port Kembla this presents an opportunity for diversification and growth in port activities and the  potential for new value-add services,” Marika Calfas, NSW Ports CEO, commented.

As informed, 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.

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

The construction of the terminal is likely to require a capital investment of between AUD 200m and AUD 300m, according to AIE.

AIE has to date entered into twelve MOUs for the supply of gas, providing the AIE Consortium confidence to move to the detailed engineering phase of the project. The AIE consortium comprises Squadron Energy, Marubeni Corporation and JERA.

“AIE looks forward to working with all relevant stakeholders, including the  Port Kembla community, regional businesses, the NSW Government and existing infrastructure owners to enable the Port Kembla Gas Terminal to deliver its first supply of gas in early 2020,” James Baulderstone, AIE Chief Executive Officer, said.

With the port selection process now finalized, AIE is targeting the lodgement of relevant planning and development applications within the next few months.

The Port Kembla Gas Terminal is said to be 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. As a gateway to global sources of natural gas, the Port Kembla Gas Terminal could underpin the vast majority of the state’s entire natural gas needs by early 2020, subject to approvals processes.