The planning approval for a $250 million gas terminal at Port Kembla is a significant milestone.

It has the potential to be a significant boost to the local economy creating 150 jobs during the construction phase and another 50 ongoing jobs once the plant is operational.

Yet it is the fact the plant will improve energy security and could ease energy costs which will generate the most excitement.

CEO of RDA Illawarra Debra Murphy said local industry was a likely benifactor.

"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.

This sentiment was echoed by the Illawarra Business Chamber.

"Rising energy costs and a lack of energy security have been dampening investment, employment growth and expansion across this state so this decision by government is most welcome," said IBC executive director Adam Zarth said.

"The Illawarra Business Chamber has been a strong advocate for the Port Kembla Gas Terminal and the decision by the AIE consortium to base the project at Port Kembla demonstrates that the Illawarra economy is ripe for investment."

The NSW Government is certainly trumpeting the fact it could even impact household power bills. The basis for this, Planning Minister Rob Stokers argues, is that currently NSW sources 95 per cent of its gas from interstate.

This terminal could supply 70 per cent of NSW's needs. That aside it's hoped the terminal will help avert expected gas supply shortages. The first gas is not expected to become available until late in 2020 so don't expect to see a drop in your household power bill any time soon.

However, this is a significant and welcomed investment for the Illawarra, which will provide a nice lift for the local economy and confidence.

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