PERTH (miningweekly.com) – The New South Wales government has approved a modification to the development consent for the Port Kembla gas terminal (PKGT) being development by Australian Industrial Energy (AIE), allowing for increased volumes through the terminal.

The Department of Planning, Industry and Environment’s executive director for energy, resources and compliance, Mike Young said that the modification would allow the terminal to increase gas supply during the cooler months when demand for gas from domestic users is high.

“The project as originally proposed assumed a relatively steady demand for gas driven largely by an industrial customer base. However, the modification means that the terminal will now be better able to match gas supply with the seasonal demands in both the industrial and retail market, particularly during the winter time,” said Young.

“The modification also includes an increase to the number of ships that can deliver liquefied natural gas (LNG) to the terminal which will allow for more flexibility in the delivery schedule. “This terminal will make the state of New South Wales more self-sufficient when it comes to energy and will create greater access to the global gas market.”

AIE said that with the additional capacity now approved, the consortium would work with government agencies to complete post-consent requirements, and with customers to firm up supply contracts.

With the supply contracts in place, AIE is aiming to take a final investment decision and to start the 14- to 16-month construction programme for the project.

AIE noted that if customers committed to the supply agreement, a final investment decision could be made in 2020, meaning gas could be flowing as early as 2022.

“The project is a major economic boost for the local economy, with the creation of 150 jobs during construction and up to 50 jobs once the plant is operational.

“It also supports diversification, future growth and employment in Port Kembla and the Illawarra/Shoalhaven region, in line with the New South Wales government’s strategic plans for these areas,” Young said.