Epik LNG terminal receives critical project status

The New South Wales government has granted Critical State Significant Infrastructure (CSSI) status to South Korean developer Epik’s proposed Newcastle LNG import terminal 160 km north of Sydney.

The New South Wales government has granted Critical State Significant Infrastructure (CSSI) status to South Korean developer Epik’s proposed Newcastle LNG import terminal 160 km north of Sydney.

The status will streamline approval processes for the $590-million (Aus.) project, which could be operational by 2022-23 to provide gas supply to electric power stations and bolster energy security in New South Wales.

Epik says the terminal could provide up to 80% of demand for the state. Currently New South Wales imports 95% of its gas supply.

The company’s proposal includes a floating storage and regasification unit (FSRU) in the Port of Newcastle tied to a jetty on Kooragang Island and connecting gas supply to Australia’s east coast gas network. The FSRU will be supplied by Norwegian shipping company Hoegh.

If built, the terminal could increase the local availability of gas in the state by 110 petajoules.

Epik now will prepare an environmental impact statement for the project that will be open to submissions from the public.

Epik’s proposal is the second LNG project to receive CSSI status in New South Wales following approval for Australian Industrial Energy consortium’s Port Kembla terminal south of Sydney in April. AIE’s proposal schedules first gas for 2021.

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