New South Wales Government is considering a proposal for a $590 million liquefied natural gas (LNG) import terminal in the Port of Newcastle, with the project given critical state significance.
Under the prosposal, the terminal will be built at Kooragang Island in Newcastle Port and promises to supply NSW with up to 80 per cent of its gas requirements.
The Newcastle GasDock project - with an estimated direct onshore investment of up to AUD$250M at the Port - today received Critical State Significant Infrastructure (CSSI) status from NSW Minister for Planning and Public Spaces, the Hon Rob Stokes MP.
The announcement by Acting Premier John Barilaro and Mr Stokes recognises the need to significantly increase local gas supply, promote competition between suppliers and put downward pressure on the State's gas prices.
Port of Newcastle CEO Craig Carmody congratulated Minister Stokes and the Berejiklian Government on their support for regional economic development.
"This is a critical future-proofing project for the region. Projects such as the EPIK Newcastle GasDock project open a number of new trade opportunities, develop capability and support businesses and jobs across the Hunter Region and around New South Wales," Carmody said.
The project - proposed by South Korean group EPIK - involves the use of an LNG Floating Storage and Regasification Unit (FSRU), a vessel designed to safely store the liquefied product and then convert it into a useable gas for industrial, commercial and residential customers in NSW.
The 170,000m3 class FSRU will connect to a new jetty planned to be built on port land at Kooragang Island, enabling a connection to the existing East Coast natural gas network.