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New approvals could stall PKGT

Australian Industrial Energy’s (AIE) LNG import project could face a delay as it moves to increase its gas capacity.

AIE had been aiming to make a final investment decision later this year on its Port Kembla Gas Terminal (PKGT), the most developed of a series of LNG import terminals planned for Australia’s east coast, with construction to be completed late in 2020.

But according to The Australian Financial Review, the venture will need to restart its approvals process with the New South Wales Government as it looks to increase the capacity of its planned reprocessing terminal to double its original volume.

AIE said potential customers had indicated more gas would need to be available to the market than the initial PKGT capacity could accommodate, while the group is also looking at constructing a gas-fired power plant of up 850 MW on the east coast.

AIE has recently approved a budget for the plant, which could serve as a readymade customer to be supplied with gas by an increased-capacity PKGT.

Earlier this month, the NSW Government labelled Korea-based EPIK’s $589 million LNG import terminal as Critical State Significant Infrastructure, with that project estimated to be operational by 2022–23.

The timeline for PKGT is still ahead of its competitors, but approvals and a final investment decision would have to come before the end of the year for the project to be operational late next year as originally planned.

AIE is a consortium of Squadron Energy, Marubeni Corporation, and a JV between Tokyo Electric and Chubu Electric.

Squadron Energy is led by prominent Western Australian businessman and billionaire Andrew Forrest.

For more information visit the AIE website.

If you have project news you would like featured in The Australian Pipeliner contact Managing Editor David Convery at dconvery@gs-press.com.au

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