Australian Industrial Energy’s (AIE) Port Kembla Gas Terminal (PKGT) has received  Development Consent from the NSW Government.

The decision by the NSW Minister for Planning, Rob Stokes, comes after a thorough review of the Project’s Environmental Impact Statement (EIS). The $250 million project has already entered into an agreement with Hoegh LNG to supply the Floating Storage and Regasification Unit (FSRU), a critical component of the PKGT.

AIE will use specialised ships as a “virtual pipeline” to transport LNG from a range of sources including domestic Western Australian and global suppliers. Shipping gas this way significantly reduces the transport component of final prices to gas consumers, enabling AIE to deliver a competitive product. This built-in supply cost advantage, along with the AIE consortium’s global purchasing power through JERA, will help AIE’s Port Kembla gas terminal revolutionise the Australian east coast energy landscape. 

The PKGT could supply more than 70 percent of NSW’s natural gas needs and now approval has been granted, is on track to deliver first gas to customers in late 2020.

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.

The PKGT could also support a major injection to NSW’s power network with AIE 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 PKGT. AIE’s power station proposal was recently shortlisted as part of the Commonwealth Government’s energy solution, the Underwriting New Generation programme.

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1st May 2019