Australian Industrial Energy plans to build New South Wales' first LNG import storage terminal at Port Kembla.
The terminal will have the ability to supply in excess of 100 PJ per annum, which means it could meet over 70% of New South Wales' total gas needs.
Development and construction of the Port Kembla Gas Terminal will make Australian Industrial Energy (AIE)– an Australian-led international consortium – a central player in the market.
The terminal, which will require a capital investment of between AUD$200 million and AUD$300 million, will increase the certainty of affordable gas supply to NSW.
AIE has entered into 12 MoU's for the supply of gas. The company says that the terminal is a comparatively low-cost and speedy alternative to the construction of new inter-state or cross-country pipelines to transport gas to NSW and the wider eastern seaboard. As a gateway to global sources of natural gas, it could also underpin the vast majority of the state's entire natural gas needs by early 2020.
AIE CEO James Baulderstone, says: 'NSW is facing significant challenges in ensuring available and affordable gas supplies and we are working to make this project a reality as quickly as possible.
'In recent times wholesale gas prices have doubled, and in many cases tripled in NSW. In addition, many industrial companies are now unable to secure gas for any period longer than 12 months.
'The world-leading expertise of the AIE partners, now combined with the enthusiasm of NSW ports and Port Kembla's regional business community to see this project realised, means AIE is well placed to deliver firm, long-term gas on highly competitive pricing and terms as soon as 2020.'
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