LNG project gets government backing

The New South Wales government made the declaration about EPIK’s Newcastle GasDock terminal at the Port of Newcastle after acting premier John Barilaro said the proposal for the AUS$589m terminal would include a connecting pipeline to the existing NSW gas supply network.

“The terminal could be operational by 2022-23 and provide supply for gas-fired power stations, helping to manage energy security during the period in which the Liddell power station is scheduled to close,” Mr Barilaro said.

“This LNG terminal would significantly address this risk and help secure a reliable and affordable future for NSW’s gas supply.”

Improving gas supply

The project, which is being carried out by EPIK subsidiary Newcastle GasDock Company, was declared critical by Planning and Public Spaces Rob Stokes.

He said the terminal, if approved, would significantly increase local gas supply, promote competition between suppliers and put downward pressure on the State’s gas prices.

“NSW currently relies on interstate sources for 95 per cent of our gas supply and experts predict a shortfall in supply from existing sources in the coming years,” Mr Stokes said.

The import terminal would expand the locally available gas supply in NSW by 110 petajoules.

Australian construction company Watpac will provide design, engineering and construction services for the onshore infrastructure components of the terminal. Watpac will be supported by Mott MacDonald.

Despite being declared ‘critical’, the terminal will still be subject to detailed community consultation and a full and thorough environmental assessment.

Newcastle GasDock Company will now need to prepare an Environmental Impact Statement for the project.

In July, EPIK, said it was working with energy consultancy, Wood Mackenzie, to conduct a comprehensive analysis of the Southeast Australian gas market.