Gas storage terminal for Victoria gets state government approval
The Viva Energy Gas Import Terminal Project is designed to shore up the state's gas supply before a forecast shortfall by 2029.
The project would consist of a liquefied natural gas (LNG) storage ship docked in Corio Bay off Refinery Pier, and 7 kilometres of new pipeline to link up to the existing gas network.
Viva Energy is yet to say if it will go ahead with the project, with the company still assessing the business case.
The Victorian government is not responsible for funding the project, but has a role in providing the necessary approvals for it to proceed.
Among these is environmental approval via an Environmental Effects Statement from Planning Minister Sonya Kilkenny, which she announced on Thursday.
Ms Kilkenny found "the potential impacts of the project can be managed with strengthened environmental management practices and [if] amended mitigation measures are adopted", a government statement read.
"If successful, the Viva Energy Terminal can receive up to 160 petajoules (PJ) of liquefied natural gas (LNG) per annum — approximately 88 per cent of Victoria's 2024 gas consumption."
The project is intended to be a cost-effective solution for the vast majority of Victorian households reliant on gas-powered cooking and heating.
Viva Energy said construction of the gas import terminal would take two years, but has not said yet when construction would start as the project is yet to get the final go-ahead.
The project would enable gas from from Australia and around the world to be brought in and deposited in a permanently moored storage unit.
"One of the key advantages of our LNG terminal is its flexibility to scale up supply during periods of peak gas demand, ensuring that households and businesses in Victoria will have a reliable gas supply all year round," Viva Energy's chief strategy officer, Lachlan Pfeiffer, said.
He said the new gas terminal would provide "important firming capacity to support the renewable energy sector as coal retires from the energy system".
Mr Pfeiffer said the company would now work to lock in large-scale gas market participants in order to firm up the business case for a final decision on whether the project could proceed.
Victoria is facing a looming natural gas shortage because supply traditionally taken from Bass Strait is running out.
The Australian Energy Market Operator (AEMO) has forecast a supply shortfall by 2029.
Mr Pfeiffer has previously said the terminal was the only complete gas solution for Victoria that could be delivered in time for predicted shortfalls in the winter of 2028.
The proposed gas project, a few hundred metres off the Geelong shoreline, has attracted vehement opposition from locals and environmental groups who have argued it will be located too close to homes and businesses.
The Victorian Greens condemned the state government for giving its approval, saying the party had been campaigning against the project alongside local communities since 2022.
"Victorian Labor have turned their backs on our bay environment, on the health and safety of communities in Geelong, and on our climate," Deputy Victorian Greens leader Sarah Mansfield said.
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