Australian Industrial Energy has announced that Port Kembla will be NSW’s first liquefied natural gas (LNG) import terminal.
The LNG import terminal will be named the Port Kembla Gas Terminal (PKGT), and will have the ability to supply in excess of 100 PJ per annum, sufficient to meet over 70 per cent of NSW’s total gas needs.
Construction of the terminal is likely to require a capital investment of between $200 million and $300 million, and generate around 150 jobs during the construction phase.
Importantly, the increased certainty of affordable gas supply to NSW would help maintain the financial viability and prosperity of industries employing more than 15,000 people across the Illawarra region and an estimated further 300,000 manufacturing jobs throughout NSW that are reliant on available and affordable natural gas.
The Port Kembla Gas Terminal has received strong support from a wide range of regional business and major Industrial and commercial gas customers.
Australian Industrial Energy (AIE) has to date entered into 12 Memorandums of Understanding (MoU’s) for the supply of gas, providing the AIE consortium confidence to move to the detailed engineering phase of the project.
AIE Chief Executive Officer, James Baulderstone, said, “NSW is facing significant challenges in ensuring available and affordable gas supplies and we are working to make this project a reality as quickly as possible.
“In recent times wholesale gas prices have doubled, and in many cases tripled in NSW. In addition, many industrial companies are now unable to secure gas for any period longer than 12 months.
“The world-leading expertise of the AIE partners, now combined with the enthusiasm of NSW Ports and Port Kembla’s regional business community to see this project realised, means AIE is well placed to deliver firm, long-term gas on highly competitive pricing and terms as soon as 2020.”
While the LNG import terminal is its first priority, AIE is also investigating the development of an associated gas-fired electricity generation plant which could play a key role in ensuring adequate long-term electricity supply security and competition for NSW and the wider east coast energy market. A decision on the potential power plant, its exact location and project timing is currently being assessed.