The project will be Australia’s second proposed LNG import terminal with an annual supply capacity of more than 1.9m tonnes, which is enough to meet more than 70 % of New South Wales’ total gas requirements.
New terminal to begin operations by 2020. The project is likely to require a capital investment between $152m- $228m
Australian Industrial Energy has announced that it will build a new liquefied natural gas terminal in Port Kembla, on the east coast of Australia, to serve domestic needs for the super chilled fuel.
The facility will be Australia’s second proposed LNG import terminal with an annual supply capacity of more than 1.9m tonnes, sufficient to meet more than 70 % of New South Wales’ total gas requirements.
AIE is a consortium made up of Japanese giants Jera and Marubeni, as well as the Australian mining magnate Andrew Forrest. It said in statement the project would allow access to a new gas supply for local industries in NSW state by 2020.
Despite being the second largest LNG exporter, Australia is still grappling with a domestic supply gap, partly due to restrictions on exploration and production, and partly to the large volume sold to Japan, China and South Korea under long-term contracts.
Building the terminal is likely to require a capital investment between $152m- $228m, AIE said.
AIE chief executive James Baulderstone said: "New South Wales 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.”
He said that AIE is well placed to deliver firm, long term gas on highly competitive pricing and terms as soon as 2020.
The new gas terminal is a comparatively low-cost and speedy alternative to the construction of far more expensive new inter-state or cross-country pipelines to transport gas to New South Wales and the wider eastern seaboard.