The New South Wales Government has approved Australian Industrial Energy’s (AIE) application to modify the existing Development Consent for the Port Kembla Gas Terminal (PKGT). 

The modification will allow increased volumes of gas to flow through the Terminal, satisfying the market need for more gas during winter months. 

This will be achieved by increasing the permitted output of the Terminal, as well as increasing the number of LNG cargoes able to be received by the Terminal. 

With the additional capacity now approved, AIE will continue working with government agencies to complete post-consent requirements and with customers to firm up supply contracts. 

With firm supply contracts in place, AIE will be able to take its final investment decision (FID) and commence the relatively short and simple 14-16 months construction program for the Terminal. 

Of the various gas import facilities proposed to service the East Coast market, the PKGT is the only Terminal with a planning consent. It is also well placed to service both the NSW and Victorian markets. 

AIE has appointed a major construction contractor, Spiecapag Soletanche Bachy (SCSB), and secured the Höegh Galleon as the Floating Storage and Regasification Unit (FSRU) for the Terminal. 

If customers now commit to supply agreements, making FID possible in 2020, gas could be flowing into NSW as early as 2022. 

The Terminal has the capacity to deliver well over 100PJ of gas each year, representing about 75 per cent of NSW total market needs. It can source LNG supplies from WA, QLD, NT or anywhere in the world, offering the most competitive prices. 

The approval cements the PKGT’s position as the only project in NSW with a potential timeframe able to assist the NSW State Government to meet the terms of its recent MOU with the Commonwealth to support the injection of 70PJ of new natural gas supplies into the market by 2022. 

AIE has adopted a highly flexible approach to accommodating customer needs, offering not only long-term fixed schedule supply contracts for industrial customers, but also tolling capacity so large volume customers, such as energy companies, can secure their own cargoes and delivery frequencies. 

Head of AIE’s PKGT Project, Peter Mitchley, said “Import terminals can be operational faster and cheaper than on-shore resources. 

“Production rates can be dialled up or down quickly to reflect market demands and the capacity of terminals can, in some instances, exceed volumes available from onshore gas fields. 

“When located in industrial zones, like our NSW Port Kembla site, there is also the added benefit of significantly reduced environmental and community impacts.”

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