AGL Energy said it would stop further development at its proposed liquefied natural gas (LNG) import terminal at Crib Point, just over a month after Victoria state rejected its plan due to concerns over adverse effects to the environment.
Victoria’s government had rejected AGL’s plan citing concerns the import terminal would damage internationally recognised wetlands, effectively killing a proposal designed to help fill an expected shortfall in gas supply in southeast Australia from 2024.
The power producer said it had already spent A$130 million on the project, and would record a pre-tax loss of up to A$108 million ($83.37 million) in its fiscal 2021 owed to the project’s spending.
AGL first proposed importing LNG to Australia in 2016. Its plans were held up after opponents pressed for an extended environmental review, saying chlorinated, chilled seawater discharged by the floating storage and regasification unit could harm sea life and hurt tourism.
In late-April, AGL’s chief executive officer, Brett Redman, resigned abruptly, ahead of the top power producer’s plans to split into a retail and a bulk power generator business.
For more information visit www.agl.com.au