The NSW government has declared a terminal for the importation of liquified natural gas (LNG) in Newcastle to be Critical State Significant Infrastructure.
The proposed terminal, at Kooragang Island in the Port of Newcastle, would allow for the direct import of gas to the NSW network via a connecting pipeline.
The proposal, by Newcastle GasDock Company (NGDC) is costed at $589 million. The terminal will include a 170,000m3 floating storage regasification unit (FSRU), and a dockside jetty to which the pipeline will connect. The port will then connect to the Sydney to Newcastle pipeline, with access to the Sydney Short Term Trading Market. The project is being proposed by Energy Projects & Infrastructure Korea.
According to acting Premier, John Barilaro, the facility would allow for the stable transition from coal fired power to alternative energies.
“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,” he said.
“This LNG terminal would significantly address this risk and help secure a reliable and affordable future for NSW’s gas supply.”
The NSW government hopes that having this import facility, which can important up to 110 petajoules of LNG, will reduce the cost of energy and allow for increased competition between suppliers. The terminal hopes to supply gas to the industrial, commercial, and residential markets.
“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,” said Planning and Public Space Minister, Rob Stokes.
The proposal will now go through community consultation and environmental assessment stages. The Department of Planning, Industry and Environment will then assess the project and recommend action to Stokes for the final decision.