Port Kembla LNG terminal approved

The Port Kembla Gas Terminal (PKGT) could supply more than 70% of NSW’s natural gas needs and now approval has been granted, is on track to deliver the first gas to customers in late 2020.

As part of the project, a Floating Storage and Regasification Unit (FSRU) vessel will be moored at a berth in the inner harbour of NSW Ports-owned Port Kembla. Carriers transporting LNG gas will berth adjacent to the FSRU and their LNG will be transferred to and stored in the FSRU.

When needed, it will be converted to gas onboard the FSRU and then inputted to the NSW gas transmission network.

AIE said on its website that it will take 10-12 months to complete construction work and make the terminal operationally ready.

Economic boost

As well as providing a new source of gas for the state, the PKGT is expected to create up to 150 jobs during construction and around 40-50 ongoing roles during operation.

Located within Port Kembla’s industrial precinct and in close proximity to existing gas transmission infrastructure, the arrival of a local source of gas could help attract additional industries and gas users to the region.

The PKGT could also support a major injection to NSW’s power network with AIE proposing an 800MW gas-fired power station as a second phase of work.

The power station, to be located in the Illawarra, would be fuelled by gas from the PKGT. AIE’s power station proposal was recently shortlisted as part of the Commonwealth Government’s energy solution, the Underwriting New Generation program.