Illustration of the new 250m Port Kembla gas terminal2. Credit: Department of Premier and Cabinet

Australian Industrial Energy has secured planning approval from the New South Wales (NSW) government for the construction of a gas terminal at Port Kembla.

The new terminal will accommodate liquefied natural gas (LNG) carrier ships, a floating LNG handling facility, wharf infrastructure and a pipeline to connect to the nearby NSW east coast gas network.

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The gas terminal is expected to create local jobs, reduce household gas bills and achieve energy security into the future.

Once operational, the terminal is expected to meet 70% of the state’s annual gas demand and help reduce energy bills for nearly 33,000 businesses and a million households in NSW that rely on natural gas.

“It could support gas-fired electricity generation in NSW and help make sure we have reliable electricity.”

The terminal is expected to create 150 jobs during construction and up to 50 ongoing roles once operational and boost the economy.

The NSW government considered the environmental, social and economic impacts identified by community, government and independent stakeholders before granting the approval for the terminal.

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While granting the planning approval, the government has stipulated certain conditions. The company will be required to manage impacts during the construction of the terminal, including excavation and dredging in Port Kembla’s harbour, as well as the management of contaminated materials and acid sulphate soils.

Australian Industrial Energy will also be required to manage hazards and risks associated with the operation of the LNG import facility and gas pipeline, in addition to regulating and monitoring air and water discharges from the project.

According to Minister for Energy and Environment Matt Kean, the Port Kembla gas terminal will be a gamechanger that could improve energy security and help ease energy costs.

Kean said: “It could support gas-fired electricity generation in NSW and help make sure we have reliable electricity.”