A proposed $589 million gas import terminal in Newcastle has been declared Critical State Significant Infrastructure by the New South Wales Government.
South Korea-based Energy Projects and Infrastructure Korea (EPIK) will develop the terminal at Kooragang Island in the Port of Newcastle
The proposed terminal, which will connect to an existing pipeline in NSW’s gas supply network, would supply up to 80 per cent of the state’s gas needs once developed.
Acting Premier John Barilaro said, ““The terminal could be operational by 2022-23 and provide supply for gas-fired power stations, helping to manage energy security during the period in which the Liddell power station is scheduled to close.”
The terminal would ‘increase local gas supply, promote competition between suppliers, and put downward pressure on the state’s gas prices.’
NSW minister for planning and public spaces Rob Stokes said, “NSW currently relies on interstate sources for 95 per cent of our gas supply and experts predict a shortfall in supply from existing sources in the coming years.”
Before approval, the terminal is subject to community consultation and an environmental assessment. The import terminal would increase local available gas supply by 110 petajoules.
The Port of Newcastle is strategically located to serve the Newcastle region as well as the broader NSW for industrial, commercial, and residential users.