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Australian Industrial Energy (AIE) plans to develop a liquefied natural gas (LNG) import terminal at Port Kembla (the Project).

With a forecast capital cost of between A$200 – A$250 million the Project, once constructed and operational, is expected to be able to supply up to 100 petajoules (PJs) of natural gas per year. This is equivalent to more than 70% of NSW’s current annual gas demand.

In addition, it is estimated the Project will create around 130-150 jobs during the construction period and between 40–50 ongoing roles.

The Project consists of four key components:

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LNG carrier vessels – there are hundreds of these vessels in operation worldwide transporting LNG from production facilities to demand centres.

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A Floating Storage and Regasification Unit (FSRU) –  a vessel moored at a berth in Port Kembla’ inner harbour. There are 29 FSRUs in operation around the world and a further 75 in the planning stage.

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Wharf facilities  – offloading arms to  transfer the   LNG from the carrier into the FSRU

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Pipeline – a standard high pressure pipeline connection from the FSRU to existing east coast gas transportation network

The import facility will allow carriers transporting LNG gas to berth adjacent to the FSRU. The LNG carriers’ liquid cargo will then be transferred to the FSRU where it will be stored.  This transfer process does not  occur under pressure, which ensures the liquid natural gas remains non-explosive and non-flammable.

From there the liquid natural gas stored in the FSRU will be warmed to convert it to a gaseous state.

It will then be piped, via a new natural gas transmission line, from the FSRU berth to the main east coast natural gas transmission network, connecting the Project to its customer base.

Based on current expected carrier configurations, one shipment of LNG every 2-3 weeks would be sufficient to supply up to 100PJs of gas annually.

Development Consent for the Project was granted by the NSW Govt in April 2019. AIE expects to have first gas to market in late 2020.

© Australian Industrial Energy 2019