Oz LNG Terminal Gets Nod for Larger Capacity

Australian Industrial Energy (AIE) has secured approval from the state of New South Wales (NSW) to raise the capacity of its planned LNG import terminal at Port Kembla.

The capacity expansion means the terminal can better satisfy market demand during the southern hemisphere winter months, AIE reported on April 20. With the approval in place, AIE can now focus on finalising supply contracts with customers, in order to sanction the project and break ground on construction.

Despite its status as a leading LNG exporter, Australia's southern states will need imports to cover rising domestic consumption. The A$250mn ($175mn) Port Kembla terminal was declared a critical project by the NSW government in 2018, fast-tracking its approval process. The venture began securing customers and awarding construction contracts last year. 

If AIE takes an FID this year, the terminal could be up and running as early as 2022. Construction work is expected to take between 14 and 16 months.

Queensland, the state immediately to the north and Victoria, immediately to the south, both have gas. Queensland is home to three export facilities which also provide gas to the domestic market. Victoria, which is running out of gas production, last month lifted its ban on onshore gas exploration but hydraulic fracturing remains off-limits.