The state government has identified the proposed Port Kembla Gas Terminal as a “critical” project.
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The project has been granted Critical State Significant Infrastructure (CSSI) status, which will see it fast-tracked, by cutting around six months off the time frame for the regulatory process.
The status was granted in recognition of the protect's importance to the state’s future energy security.
“NSW currently relies on interstate sources for 95 per cent of its gas supply and the Australian Energy Market Operator predicts a significant shortfall in gas supply from existing sources from 2018 onwards,” said state Planning Minister Anthony Roberts.
“This shortfall could be worse if there is a greater reliance on gas-fired power generation following the planned closure of the Liddell coal-fired power station in 2022.”
The CSSI determination means the project will go through a “separate assessment pathway”, overseen by the Independent Planning Commission.
The proposed terminal will still be subject to community consultation and a full environmental assessment.
The terminal is the project of Australian Industrial Energy, a consortium made up of Andrew Forrest’s Squadron Energy, global infrastructure investor Marubeni Corporaton and liquefied natural gas (LNG) buyer Jera.
The group announced Port Kembla as its preferred site earlier this month.
Australian Industrial Energy CEO James Baulderstone said the CSSI status was a win for the project.
“Obtaining CSSI designation is a strong endorsement for the concept of Australia’s leading LNG import terminal, which has the potential to transform the Australian east coast gas and power markets,” Mr Baulderstone said.
“The major attraction to government and industry alike is that our Port Kembla Gas Import Terminal can deliver competitive gas supply certainty for NSW within two years.”
The next step will see AIE request assessment requirements for the preparation of an Environmental Impact Statement.
When the Department of Planning and Environment receives the EIS it will then go on public exhibition for community feedback.
The final decision on the project will rest with Planning Minister Mr Roberts.
Glen Humphries
I'm an award-winning senior journalist with the Illawarra Mercury and have well over two decades' worth of experience in newspapers. I cover the three local councils in the Illawarra for the Mercury, state and federal politics, as well as writing for the TV guide. If I'm not writing, I'm reading.
I'm an award-winning senior journalist with the Illawarra Mercury and have well over two decades' worth of experience in newspapers. I cover the three local councils in the Illawarra for the Mercury, state and federal politics, as well as writing for the TV guide. If I'm not writing, I'm reading.
