VICTORIA’s Minister for Planning, Sonya Kilkenny, has released her assessment of the Environmental Effects Statement for the proposed Viva Energy Gas Terminal Project in Corio, Geelong.
Ms Kilknny found the potential impacts of the LNG import project can be managed with strengthened environmental management practices and if amended mitigation measures are adopted. This assessment advances the project towards Viva's commercial decision to move forward, pending further regulatory approvals.
The announcement was quickly welcomed by Viva, with the company’s chief strategy officer Lachlan Pfeiffer describing the decision as a significant milestone for the Viva Energy Hub in Geelong and for Victoria’s energy security.
The new infrastructure – an extension to Geelong refinery jetty, a permanently moored floating storage and regasification unit (FSRU) and a short 7km pipeline connecting it to the state’s gas main – would have the capacity to supply in excess of 120 petajoules of gas per year and introduce significant new supply capacity: peak supply of up to 750 terajoules per day to meet the daily and seasonal gas demands of Victoria and southern Australia.
With construction of the terminal expected to take two years, it promises a complete solution to the structural gas shortfalls forecast to impact Victoria from 2028 onwards, Viva said.
The project would create up to 200 jobs during construction and around 70 ongoing jobs once completed.
“We are striking the right balance between development and environmental responsibility through the rigorous and transparent EES process,” Ms Kilkenny said, while Minister for Energy and Resources Lily D’Ambrosio added “Gas is part of our energy transition, but supply is dwindling and prices are going up. That's why we're securing gas supply and helping families and businesses that can go electric slash their energy bills, freeing up gas supply for industries that can’t make the switch."
Viva said the terminal’s ability to deliver the cheapest gas available on the global market will provide a substantial economic benefit, ensuring the most cost-effective gas for consumers and businesses alike. Because the project avoids the need for significant pipeline augmentation or duplication, transmission costs will also be minimised.
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 investment decision on the project. “Timing remains a critical factor – we need to hit a range of milestones in order to get the LNG terminal constructed in time to meet the gas shortfall expected to develop from 2028 onwards,” he said.
“We are working closely with potential off-takers and counterparties to secure the commercial structure of the terminal. With construction likely to commence in the second half of 2026, with the majority of works in 2027, various capital and commercial structures are being assessed.”
The gas terminal will be an important component of the Viva Energy Hub, which incorporates the Geelong refinery, strategic fuel storage, a green hydrogen refuelling station, plans for co-processing low carbon liquid fuels and participation in the circular economy through the recycling of waste plastic and tyres.
The FSRU will remain in place for as long as market demand requires – when there is no longer sufficient demand for gas, the FSRU would leave the terminal and the jetty would be re-purposed.
The EES approval comes just after rival LNG FSRU proponent Vopak’s plan for a floating unit to be moored in Port Phillip Bay was advanced by new Victorian legislation.