The Illawarra is set to help address forecast gas shortfalls on Australia’s south-east coast, with pipeline works now complete to supply Sydney or Melbourne with gas from Squadron Energy’s Port Kembla Energy Terminal (PKET) via Jemena’s Eastern Gas Pipeline (EGP).
An upgrade to make the EGP bi-directional means it can now carry 200TJ of gas a day south to Victoria, on top of an existing capacity to move 350TJ a day north into New South Wales.
PKET is the first and only regasification terminal in Australia ready to help ease any future gas shortfalls on the east coast from 2027, with construction and landside commissioning completed under strict safety and environmental standards, a floating storage and regasification unit (FSRU) contracted and Reganosa appointed as landside managers.
Squadron Energy Senior Operations Manager Rita Boyd said this latest milestone is good news for households, businesses and industry who, the Australian Energy Market Operator (AEMO) has warned, are at risk of experiencing gas shortages from 2029.
“PKET’s infrastructure provides energy security as Australia transitions to renewable energy – regardless of whether the gas is delivered via the domestic gas reservation scheme or from an international source, PKET can supply 100 per cent of the gas AEMO has forecast NSW and Victoria will need on a peak day,” Ms Boyd said.
“By solving the problem of getting large volumes of gas to where it is needed on the south- east coast, PKET will continue the rich industrial history that the Illawarra is so proud of.”
Jemena General Manager Gas Services, Craig Farrugia, said the company had now completed work to connect the Port Kembla Energy Terminal to the east coast gas grid.
“The upgrades will allow gas to be transported in multiple directions, creating greater flexibility and optionality for supply into New South Wales and Victoria,” he said.
Mr Farrugia said the investment meant Illawarra’s role in supporting Australia’s energy system would only grow.
Located at Port Kembla, PKET can receive liquid natural gas (LNG) by sea via the Höegh Galleon FSRU, which converts it back into gas.
The gas will then be transported via a 12-kilometre pipeline to Kembla Grange, where it will enter the EGP at Kembla Grange for distribution to Victoria or New South Wales.
More than 15 people will be employed to operate PKET.