AIE selects Port Kembla as preferred site for LNG terminal in NSW

Australia-based Industrial Energy (AIE) has chosen Port Kembla in New South Wales (NSW) as the preferred location for the development of a liquefied natural gas (LNG) import terminal.

AIE is a consortium comprising Japanese firms JERA and Marubeni, as well as Australia-based Squadron Energy.

Set to be developed at a cost of up to A$300m ($229m), the terminal will receive gas from South-East Asia, the US and other parts of Australia to be supplied to the east coast market.

The terminal will have the capacity to supply more than 100 petajoules (PJ) a year, which is enough to meet around 70% of the state’s total gas needs.

AIE CEO 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 terminal will generate 150 jobs during the construction phase and up to 50 ongoing jobs.

Baulderstone added: “AIE looks forward to working with all relevant stakeholders, including the Port Kembla community, regional businesses, the NSW government and existing infrastructure owners to enable the Port Kembla Gas Terminal to deliver its first supply of gas in early 2020.”

The consortium selected Port Kembla following a comprehensive evaluation process looking at port operations, berth configuration options, and proximity to the existing east coast gas transmission network.

AIE is currently planning to submit relevant planning and development applications within the next few months.