BlueScope is excited about having a gas supplier just over on the other side of Port Kembla.
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Australian Industrial Energy wants to build a gas terminal on one of the berths now occupied by the Port Kembla Coal Terminal.
The terminal would give up part of its lease to AIE for the gas terminal.
BlueScope had been campaigning for a more affordable energy supply and saw this as “a positive step”.
Having a gas supplier so close was would make a great deal of difference to the Port Kembla steelmaker.
Read more: ‘Game-changing’ gas terminal for Port Kembla
“The location is perfect for BlueScope, as having competitively priced gas supply on our doorstep is very important,” a BlueScope spokesman said.
“We look forward to working with AIE to explore opportunities to secure affordable gas supply.”
Illawarra Business Chamber Executive Director Adam Zarth said the organisation had “advocated strongly” for the project.
“This project will provide significant relief for the 15,000 businesses in the Illawarra that rely on gas for their energy requirements.”
RDA Illawarra CEO Debra Murphy said the the Port Kembla Gas Terminal will provide certainty of liquefied natural gas supply to the energy-intensive manufacturing sector in the Illawarra region and beyond.
“This terminal could alleviate the pressure of high energy costs on the Illawarra’s steel and manufacturing sector and support their long term sustainable business viability,” Ms Murphy said.