AIE's Oz Import Terminal Gets State Approval

Australia Industrial Energy (AIE) said April 29 that New South Wales (NSW) government has awarded development consent to its A$250mn (US$176mn) Port Kembla LNG import terminal.

“The decision by the NSW minister for planning, Rob Stokes, comes after a thorough review of the project’s Environmental Impact Statement (EIS),” AIE said.

The project is planned to have capacity of over 2.7bn m³/year, which would meet over 70% of NSW’s total gas needs, according to the company. No details of the supply and offtake contracts under discussion were offered. The project is on track to deliver first gas to customers in late 2020, AIE said. Australia’s Squadron Energy and Japan’s Jera and Marubeni Corporation are AIE’s partners on the project.

The project has already entered into an agreement with Hoegh LNG to supply the floating storage and regasification Unit (FSRU),

Located within Port Kembla’s industrial precinct and in close proximity to existing gas transmission infrastructure, the arrival of a local source of gas could assist in attracting additional industries and gas users to the region, AIE said.

Australia is on track to become the world’s largest exporter of LNG and does not currently import the fuel. But a tight supply outlook for the country’s east coast has led to the announcements of a number of separate import project plans for the region.

AIE is also proposing an 800MW gas-fired power station as a second phase of work. The power station, to be located in the Illawarra, would be fuelled by gas from the terminal. AIE’s power station proposal was recently shortlisted as part of the federal government’s energy solution, the Underwriting New Generation programme.