The New South Wales (NSW) government has placed Australian Industrial Energy’s (AIE) proposed Port Kembla Gas Terminal (PKGT) on its priority project list.
The ‘Priority Project List’ aims to fast-track activities that support the recovery of the NSW’s economy during and after the coronavirus pandemic.
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As part of the project, energy infrastructure company Jemena planned to build a 6km gas pipeline to connect the proposed Port Kembla Gas Terminal to the 797km Eastern Gas Pipeline (EGP).
The liquefied natural gas (LNG) import terminal will be the first in New South Wales. It will be capable of supplying up to 100 petajoules (PJs) of natural gas a year.
It will have the capacity to supply more than 70% of New South Wales’s natural gas needs.
Jemena Gas Markets executive general manager Antoon Boey said: “We welcome today’s announcement from the New South Wales Government as a vital step towards expediting this crucial gas project.
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By GlobalData“We know many New South Wales and Victorian homes rely on gas for cooking, hot water, and heating and that it is an irreplaceable input into manufacturing and commercial operations in both states. We’ve taken steps to ensure we’re ready to commence construction of our pipeline link as soon as we know the import terminal is proceeding.
“The proposed upgrades to the Eastern Gas Pipeline are the cheapest way of bringing new gas and competition to New South Wales to help drive down costs.”
The energy infrastructure company plans to invest $70m to build the lateral pipeline and modify the EGP, with more than 180 jobs expected to be created throughout the construction and development phases of the project.
Jemena is set to commence work once the PKGT announces its final investment decision (FID), which is expected by this year-end.
In June last year, Australian Industrial Energy granted a key wharf facility and pipeline construction contract for the LNG import facility at PKGT.
