Australian Industrial Energy (AIE) has signed a long-term lease for the Port Kembla Gas Terminal (PKGT) in New South Wales.
Signed with NSW Ports, the lease for the PKGT is for an initial 10-year term with options to extend up to 25 years, which AIE said will secure gas supply certainty in the state and provide economic benefits for the region.
Located in an existing industrial port, the new terminal will be 6 km from the existing Eastern Gas Pipeline that provides a major gas arterial between Victoria and NSW.
AIE – part of the Squadron Energy Group – said construction of the PKGT should take 18-20 months, putting the project on track to supply more than 75 per cent of NSW’s gas needs by the end of 2022, and will create almost 150 jobs during its construction.
“This cements the PKGT as the only project in the eastern states with a potential timeframe to assist the NSW State Government to meet the terms of its recent memorandum of understanding with the Commonwealth to inject an additional 70 PJ of gas into the east coast market to meet predicted shortfalls,” said AIE.
AIE Chair Michael Masterman said the PKGT demonstrates the important role natural gas plays as a transition fuel towards a low carbon future.
“Our commitment to delivering Australia’s first gas terminal is about reinforcing grid reliability today and investing in carbon-free technologies that support a more rapid decarbonisation of the economy,” said Mr Masterman.
NSW Ports CEO Marika Calfas welcomed AIE’s long-term commitment to Port Kembla and said the terminal provides significant opportunity for the region as well as addressing future energy needs in NSW and other states.
“We commend AIE and Squadron Energy’s commitment to using local businesses to create value and jobs throughout the Illawarra region,” said Ms Calfas.
AIE is also simultaneously pursuing the development of a duel fuel, LNG and hydrogen 800 MW power station that will initially be fuelled by gas from the PKGT.
For more information visit the AIE website.
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