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Vopak hands in gas terminal plan

January 6, 2023 BY

The state government will consider plans for a second floating gas terminal in the region, this time near Avalon. Photo: SUPPLIED

A SECOND energy company is seeking approval to build a floating gas terminal near Geelong, with Vopak submitting its plan to the Victorian Government.

The Dutch-owned corporation has presented its Victoria Energy Terminal to planning authorities to begin consideration of its Environmental Effects Statement (EES).

State planning laws require projects with potential for significant environmental impacts to undergo the EES assessment, which is the same process that Viva Energy underwent during the past 12 months.

Vopak plans to build a floating liquified natural gas (LNG) terminal in Port Phillip Bay near Avalon.

A moored ship would receive LNG from import tankers and convert the gas to liquid on board before being piped underground to Victoria’s transmission grid.

Vopak predicts its gas terminal would take between 20 and 50 deliveries each year from LNG carriers, which would moor alongside the terminal for up to 24 hours to unload the gas.

The facility is planned to be operational by 2026 for at least 10 years, with its future use to be determined by the state’s ongoing gas demand. The import ship would leave Port Phillip Bay once no longer needed.

Vopak says its terminal “offers a low-impact solution to the predicted shortfalls in the supply of natural gas to the state” as Victoria pursues its carbon reduction targets.

“We welcome the opportunity to continue our dialogue with the community and stakeholders to gain an understanding of their priorities,” Victoria Energy Terminal managing director Rolf Brouwer said.

“This engagement has helped guide key aspects of the project in Port Phillip Bay, together with the necessary associated infrastructure.

“Vopak will continue to work with communities and key stakeholders to inform the project.”

The plan has come under fire from state and local environmental groups, who say they are opposed to any new fossil fuel projects that could slow down a transition to renewable energy sources.

Vopak’s submission comes after it hosted multiple consultation rounds at Geelong, Portarlington and Werribee last year.

The state government is yet to decide on a similar proposal from Viva to build a gas terminal offshore from its Corio Refinery.

An Inquiry and Advisory Committee held public hearings on the project last year and submitted its recommendations report to the state planning department in October for a final ministerial decision.