A Liquefied Natural Gas (LNG) import terminal at Newcastle that could supply up to 80 per cent of NSW’s gas needs - declared Critical State Significant Infrastructure – might be underway soon.
Port of Newcastle welcomed New South Wales Government support for the proposed liquefied natural gas (LNG) import terminal at the Port.
The Newcastle GasDock project – with an estimated direct onshore investment of up to AUD$250M (potential onshore infrastructure) at the Port – today received Critical State Significant Infrastructure (CSSI) status from NSW Minister for Planning and Public Spaces, the Hon Rob Stokes MP.
The project has an estimated AUD$589M value, including the FSRU.
The announcement today by Acting Premier John Barilaro and Mr Stokes recognises the need to significantly increase local gas supply, promote competition between suppliers and put downward pressure on the State’s gas prices.
Port of Newcastle CEO Craig Carmody congratulated Minister Stokes and the Berejiklian Government on their support for regional economic development.
This is a critical future-proofing project for the region. Projects such as the EPIK Newcastle GasDock project open a number of new trade opportunities, develop capability and support businesses and jobs across the Hunter Region and around New South Wales,” Mr Carmody said.
The project – proposed by South Korean group EPIK – involves the use of an LNG Floating Storage and Regasification Unit (FSRU), a vessel designed to safely store the liquefied product and then convert it into a useable gas for industrial, commercial and residential customers in NSW.
The 170,000m3 class FSRU will connect to a new jetty planned to be built on port land at Kooragang Island, enabling a connection to the existing East Coast natural gas network.
We are working on a number of projects to diversify the Port and support importers and exporters to successfully compete in international markets,” Mr Carmody said.
This creates jobs and ensures more money is invested back into local communities.”
Mr Carmody congratulated EPIK on the significant milestone as the company works towards a final investment decision early next year.
Port of Newcastle has been a global trade gateway for more than 220 years and this project introduces new trade and economic growth opportunities for the region and NSW,” Mr Carmody said.
Newcastle has much to offer, including a deepwater shipping channel operating at 50% of its capacity, significant port land available and enviable access to national infrastructure such as rail and road.
As custodians of our region’s critical asset, we are striving every day to create a safe, sustainable and environmentally and socially responsible Port for the future.”
EPIK Founder and Managing Director Jee Yoon said the company was pleased with the project’s momentum.
EPIK’s primary objective is to deliver the most competitive infrastructure solution for natural gas imports into NSW," Mr Yoon said.
With CSSI status in hand, we are a considerable step closer to delivering the critical infrastructure needed to bring new energy to NSW, providing access to long-term, competitive gas supply to the region, safely powering our homes, driving industry forward and keeping prices low for everyone to enjoy.”
Newcastle was chosen because of its strategic location proximate to significant industrial gas and power users, and access into the Sydney Short Term Trading Market, allowing natural gas imported through the Newcastle terminal to reach users throughout NSW and broader southeast Australian market at a competitive price point.
Port of Newcastle’s support, along with that of the broader business and industrial sector, is greatly appreciated and of much value to the project development.”
Acting Premier John Barilaro said the proposal for the new $589 million gas import terminal at Kooragang Island in the Port of Newcastle would include a connecting pipeline to the existing NSW gas supply network.
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,” Mr Barilaro said.
This LNG terminal would significantly address this risk and help secure a reliable and affordable future for NSW’s gas supply.”
The project was declared CSSI by Planning and Public Spaces Rob Stokes who said the terminal, if approved, would significantly increase local gas supply, promote competition between suppliers and put downward pressure on the State’s gas prices.
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,” Mr Stokes said.
The import terminal would expand the locally available gas supply in NSW by 110 petajoules.
Despite being declared ‘critical’, the terminal will still be subject to detailed community consultation and a full and thorough environmental assessment.
The proponent, Newcastle GasDock Company (NGDC), will now need to prepare an Environmental Impact Statement for the project, which will go on public exhibition for community feedback.
The Department of Planning, Industry and Environment will then assess the merits of the project, before making a recommendation to Minister Stokes for a final decision.
Photograph credit ~ Port of Newcastle
EPIK is an LNG project development company that originates and develops FSRU project opportunities across the globe, including Newcastle GasDock LNG terminal project at the Port of Newcastle, NSW.
With LNG increasingly becoming the fuel of choice in today’s market, global LNG trade is at an all-time high, and with continued market growth projections spanning well into the 2030s, EPIK specializes in the origination and development of floating LNG regasification projects in regions with high natural gas demand.
EPIK’s Newcastle GasDock project is being developed by wholly-owned EPIK subsidiary Newcastle GasDock Company Pty. Ltd. and is proposed to include a 170,000m3 class FSRU and associated on-shore infrastructure. For more, visit www.epiklng.com