The proposed Port Kembla Energy Terminal,near Wollongong,has emerged as one of the most viable near-term solutions to boost gas supplies into NSW and Victoria,where the Australian Energy Market Operator (AEMO) is projecting an energy shortage whengas demand outstrips supply by 2027.
Exacerbating the risk of shortfalls,the Port Kembla terminal project was taken off the market operator’s list of “anticipated” new supply projects in its latest assessment because not enough customers had signed up to use it yet.
However,Squadron Energy has reaffirmed its commitment to completing the project,and said it was seeing “significant and growing” customer demand to contract gas through the terminal from 2026 onwards.
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“Squadron Energy is committed to the delivery of LNG via the terminal,to support the needs of our assets and energy users,as Australia transitions to renewable energy,” Squadron chief executive Jason Willoughby said.
Another option is Viva Energy’s proposal to beginimporting LNG shipments at the site of the Geelong oil refinery in Victoria. The project was initially planned to bring first gas by the winter of 2024,but a final investment decision on the project has since been delayed amid a drawn-out environmental approvals process and requests from the state government for additional information on its potential local impacts.
Graeme Bethune,of Adelaide energy consultancy EnergyQuest,said the forecast east-coast gas shortfalls and delays to the Geelong import terminal raised the prospect of gas being sent via pipeline from the Port Kembla import terminal into Victoria.