Australia's Victoria state government has blocked the development of the Crib Point LNG import terminal at Western Port bay, south of Melbourne, Victoria, because of the impact on the local environment. The 530TJ/d (14.15mn m³/d) Crib Point project is operated by Australian gas firm and utility AGL Energy, which is assessing the Victorian government's decision.
Victorian minister for planning Richard Wynne has determined that the project will have unacceptable environmental effects, AGL Energy said.
"AGL is reviewing and considering its position in relation to the minister's determination," AGL Energy said. An update in relation to the impact on the project will be provided once this assessment is complete.
The ruling may lead to AGL abandoning the project as the firm is open to buying gas from some of the other LNG import terminals proposed for southeastern Australia and does not necessarily need to have its own import facility to procure gas for its fleet of gas-fired power stations and for its wholesale and retail gas businesses. The proposed start-up of the 2mn t/yr Port Kembla Gas Terminal (PKGT) in New South Wales (NSW) by 2023 has eased the need for Crib Point and some of the other four LNG import projects proposed for the region.
"AGL is a gas trader, we speak to everyone and we are in discussions with all gas project operators. We have signed around 150PJ of gas deals over the past 12 months and that has come from many sources," AGL chief executive officer Brett Redman said in response to a question at AGL's Investor day presentation held today.
The proposed start-up of PKGT by 2023 is projected to push back a potential gas shortfall in east Australia to 2026 from a previous 2024 prediction. But a shortfall could emerge in Victoria state during the winter of June-August 2023 if the planned LNG terminal is delayed.
The decision by the Victorian state government was based on marine discharges from the proposed Crib Point terminal would have unacceptable effects on the environment in Western Port, which has wetlands of international significance, said minister Wynne.
The state government decision is based on an environment effects statement (EES) produced by AGL and Australian pipeline operator APA Group, which was to build a pipeline connecting Crib Point to eastern Australia's gas grid, said Wynne. There were around 6,000 public submissions and a report into the findings of the statement by an independent Inquiry and Advisory Committee (IAC), he said.
The IAC reviewed the EES and considered all the submissions and it also held a public hearing on the proposal over a period of ten weeks from October-December 2020, the minister said.
There are another two LNG import terminals proposed for Victoria, including the 500-600 TJ/d import terminal operated by Australian refiner and marketer Viva Energy near its 128,000 b/d Geelong oil refinery. Dutch storage firm Vopak plans to build an LNG import terminal at Avalon in Port Phillip bay in Victoria through a 636-849 TJ/d (17mn-22.7mn m³/d) floating storage regasification unit facility.
