A suggested gas storage facility offshore from Geelong, capable of providing much of Victoria’s needs, has moved nearer to construction after receiving endorsement from the state government.
According to the government, the Viva Energy Gas Import Terminal Project aims to bolster Victoria’s gas supply, as experts predict a deficit by 2029.
The initiative would involve an LNG storage vessel moored in Corio Bay near Refinery Pier, along with a new 7-kilometre pipeline to connect with the current gas infrastructure.
Viva Energy has not indicated whether it will proceed with the project; the company is still evaluating the business case.
The Victorian government does not fund the project, but it plays a part in granting the required approvals so that it can move forward.
Included among these approvals was the green light from Planning Minister Sonya Kilkenny through an Environmental Effects Statement, which she unveiled on Thursday.
Ms Kilkenny believed that “the possible effects of the project could be handled through enhanced environmental management strategies and by implementing revised mitigating actions,” as stated in a governmental announcement.
If successful, the Viva Energy Terminal could handle up to 160 petajoules (PJ) of liquefied natural gas (LNG) annually—roughly 88 percent of Victoria’s anticipated gas usage for 2024.
Victoria is confronting an impending natural gas shortfall as the supply typically sourced from Bass Strait is depleting.
It is claimed that this project offers an economical answer for most Victorian homes depending on gas for cooking and heating purposes.
Drive to secure commitments from gas market participants
Viva Energy mentioned that building the gas import facility would require approximately two years; however, they have not specified when construction will commence since the project still needs approval for final authorization.
This initiative would facilitate bringing natural gas sourced both within Australia and internationally to be stored indefinitely in a fixed floating reservoir facility.
“The primary benefit of our LNG facility lies in its ability to increase supplies when gas demands spike, guaranteeing that both homes and industries across Victoria maintain consistent access to natural gas throughout the year,” stated Lachlan Pfeiffer, Chief Strategy Officer at Viva Energy.
He stated that the additional gas facility would offer “essential backup capability to bolster the renewable energy sector as coal exits the energy landscape.”
Mr Pfeiffer stated that the company will now focus on securing commitments from major players in the gas markets to strengthen the project’s viability for a conclusive go-ahead decision.
Community organisations denounce government choice
The planned gas initiative, situated just a short distance offshore from the Geelong coastline, has sparked intense dissent.
residents and conservation organizations who have contended that it would be situated too near to houses and commercial establishments
.
In addition to his frustration with the government’s choice, Greg Foyster, who works as the rivers and nature campaigns coordinator for Environment Victoria, stated that the initiative still needs to clear “several obstacles.”
He mentioned these concerns involve queries regarding the adequacy of the width of the Geelong shipping channel for LNG carriers and whether Viva Energy can obtain a floating gas processing vessel.
He pointed out that focusing on reinforcing gas supplies overlooked the path that future generations will likely follow as they shift from gas-powered devices to electrical ones fueled by renewable energy sources.
“If we continue to burn gas at the current rate, it might become our primary source of emissions by the 2040s when the power grid is expected to transition entirely to renewable sources,” Mr Foyster stated.
The optimal solution for everything here is to transition to energy-efficient electrical devices… it’s not about boosting the gas supply, but rather decreasing the reliance on gas.
For many years, the Victorian Greens have aligned themselves with environmental organizations against this project and recently denounced the state government for granting approval.
“The Victorian Labor party has abandoned our bay environment, the well-being and security of Geelong’s residents, and our climate,” stated Sarah Mansfield, the deputy leader of the Victorian Greens.
