All-up 101 projects have been fast-tracked as part of the government's infrastructure response to the economic impact of COVID-19.

The pipeline from Port Kembla to Kembla Grange was one of the most recent group of projects to be approved earlier this month.

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Gas distributor Jemena put forward the proposal to build the pipeline, which would share the same alignment as its existing pipeline, underneath predominantly industrial and commercial land.

The approved 6.3-kilometre gas pipeline would connect the proposed Port Kembla Gas Terminal with the Eastern Gas Pipeline at Kembla Grange.

"This additional capacity would mean gas from the Port Kembla Gas Terminal, which was recently approved to import up to 115 PetaJoules of gas per year project, could be conveyed to the Eastern Gas Pipeline and made available to the wider NSW market," the development proposal stated.

The proposal stated the second pipeline would mean the terminal could operate at full capacity.

While the second pipeline has been approved by the NSW Planning Department, Jemena will only build if it Australian Industrial Energy - the company behind the Port Kembla Gas Terminal decide to build it

AIE needs to lock in enough contracts with gas buyers to make the project viable and a final decision is expected by the end of the year.

Kiama MP Gareth Ward said the pipeline - if built - would provide economic benefits to the Illawarra.

"The new pipeline can be constructed without disrupting the current supply and it will allow more gas into the market while increasing the security, reliability and affordability of gas in NSW," Mr Ward said.

"It will also support $51 million economic investment for the Port Kembla region, and the opportunity for around 60 new constructions jobs."

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