Port Kembla selected for new liquid natural gas site

Media release | 4 June 2018

Port Kembla has been selected as the proposed site for a new $200 million liquefied natural gas (LNG) import terminal that could supply up to 70 per cent of the state’s gas needs.

Minister for Trade and Industry, Niall Blair was at the site today to meet with a consortium backing the project led by Australian Industrial Energy (AIE) which includes Japanese energy giants JERA and Marubeni and Australia’s Squadron Energy.

“This is a game changer for Port Kembla, the Illawarra and the entire state,” Mr Blair said.

“From 2020, AIE plans to ship up to 1.8 million tonnes of LNG into Port Kembla. That’s enough gas to supply around 85,000 average homes for an entire year.

“NSW currently relies on various interstate sources for 95 per cent of its gas needs, which can be less reliable and more expensive. This proposal has the potential to provide long term security of gas supply at competitive prices.”

Minister for Energy and Resources, Don Harwin said NSW has over 1.2 million household gas users, 33,000 gas reliant businesses and over 500 heavy industrial users with around 300,000 employees.

“This innovative and scalable solution is a highly competitive alternative to relatively expensive piping of gas from other states. It will save energy intensive businesses significant time and money and it will create and sustain jobs for NSW.”

Parliamentary Secretary for the Illawarra, Gareth Ward said the Port Kembla site is close to existing infrastructure and could also provide other energy-intensive industries with secure, certain and cost competitive supply of gas.

“I’m particularly pleased to welcome JERA and Marubeni, both global energy players with decades of market leading experience in this market - they have recognised the potential in Port Kembla and I expect the new import terminal to be just the start.”

AIE plans to submit planning and development applications for the import terminal to the NSW Government in the coming months.