3/21/2020 LNG import terminal approval — an Australian first — a sign of hope for NSW manufacturing - ABC News (Australian
stralian Broadcasting …
LNG import terminal approval — an Australian first — a
sign of hope for NSW manufacturing
ABC Illawarra By Kelly Fuller and Gavin Coote
Posted Mon 29 Apr 2019, 1:42pm
Industry leaders are celebrating the approval of a $250 million gas RELATED STORY: 'It's a game changer': LNG terminal
import terminal in New South Wales which is tipped to meet the expected to drive down gas prices
majority of the state's gas needs and secure thousands of RELATED STORY: AGL announces new gas-fired
manufacturing jobs. power plant for 2022
RELATED STORY: BlueScope doubles profit but warns
The NSW Government announced it had given the green light for the
of rising energy costs, cartel investigation
project on Monday, which would involve building a new berth at Port
Kembla, south of Sydney, to house a floating liquid natural gas (LNG)
handling facility. Key points:
A consortium backed by billionaire Andrew Forrest and Japanese energy $250m gas import terminal approved
giants is behind the project, and will be subject to conditions aimed at for construction at Port Kembla
minimising impacts of dredging in the harbour, as well as regulating air and Experts say hub will shore up state's
gas supply and create thousands of
water discharges during construction.
jobs
Deputy Premier says project could
"We've heard from manufacturers about the cost of energy, especially affect the need for coal seam gas
around gas," NSW Deputy Premier John Barilaro said.
"What this will do is stimulate the economy [and]
keep those jobs in Australia … in my mind it means
a boost to our manufacturers."
New hub could be 'just the beginning'
The gas terminal itself would create 150 construction and 50 ongoing jobs, but the Illawarra Business Chamber said it
would secure 15,000 jobs in gas-dependent businesses across the region.
Regional Development Australia Illawarra chief executive, Debra Murphy, said it was a boon for energy-intensive
industries right along the east coast of Australia.
"It'll really assist high energy-intensive manufacturing," Ms Murphy said.
"Energy costs a lot not only to households, but also to industry — so it's great to see
there can be more certainty for the market."
Ms Murphy said the LNG import terminal was "just the beginning", with the potential for a gas-fired power station nearby.
The proposed gas-fired power plant was among 12 projects shortlisted last
month for Federal Government underwriting, which was in response to Want more local news?
some Nationals MPs' calls for a new coal-fired plant. Subscribe to the ABC Illawarra Weekly
Major gas projects are also being proposed in other states, including Local news, delivered to your inbox
AGL's plans for a floating terminal at Crib Point in Victoria, but have yet to
receive planning approval.
Squadron Energy chief executive officer Stuart Johnston said gas-fired power was crucial to "firm up" the supply across
NSW.
https://www.abc.net.au/news/2019-04-29/australian-first-lng-import-terminal-at-port-kembla-green-light/11054028 1/2
3/21/2020 LNG import terminal approval — an Australian first — a sign of hope for NSW manufacturing - ABC News (Australian Broadcasting …
"[With] the massive increase in renewable energy that we're seeing across the eastern seaboard, you need something to
turn that from intermittent to firm," Mr Johnston said.
Diversification signals shift away from coal
PHOTO: Wollongong councillor Dom Figliomeni oversaw operations at Port Kembla as the long-time boss of the Port Authority.
(ABC Illawarra: Gavin Coote)
While being one of NSW's biggest ports, Port Kembla has had its share of uncertainty in recent years, with the near-
closure of the steelworks and China's recent restrictions on Australian imports.
Wollongong City councillor Dom Figliomeni, who was the boss of Port Kembla Port Corporation for almost a decade, said
the port's diversification would help shield it from volatility in the coal market.
"The thing with diversification is it ensures the longer term viability of the local economy in that it is not a mono-industry
[and] doesn't rely on one particular industry, such as coal," Cr Figliomeni said.
"It does cement the opportunity for Port Kembla to be one of the most diversified
ports across the country."
CSG 'more expensive' than imports, says Deputy Premier
While it is widely considered a gamechanger in the way gas is accessed in the NSW market, it remains unclear whether
the importation of gas will negate the need for domestic coal seam gas (CSG) production.
Gas company Santos is awaiting approval for its highly controversial Narrabri Gas Project in the state's north west, and
Mr Barilaro said a final decision would be made on it later this year.
"Coal seam gas is a form of gas, [that] in its extraction … does make gas a little bit more expensive, so there are other
arguments — not only the impacts it will have on aquifers," Mr Barilaro said.
"The reality here today is we want to see gas here in the New South Wales market, be it CSG, be it liquified natural gas
that comes through pipelines from the Bass Strait."
Topics: business-economics-and-finance, oil-and-gas, manufacturing, electricity-energy-and-utilities, port-kembla-2505, narrabri-2390, crib-point-3919
Contact Kelly Fuller
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