The Australian Victoria State Government has delivered a positive assessment on the EES for Viva Energy’s LNG terminal project in Geelong.
This new infrastructure – an extension to the Geelong refinery jetty, a permanently moored FSRU and a short 7 km pipeline connecting it to the State’s gas main – will play a crucial role in maintaining the quality of life for Victorians and ensuring the stability of gas supply in southeastern Australia, the developer said.
Victorian Planning Minister, Sonya Kilkenny, found that, subject to conditions, the project can proceed with acceptable environmental effects.
Viva Energy’s gas terminal 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 Energy claimed.
In addition to supporting flexible gas-fired electricity generation, it will ensure reliable supply for the more than 2 mill households and 65,000 businesses in Victoria that rely heavily on gas for their daily needs and operations.
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, the developer added.
Viva Energy’s Chief Strategy Officer, Lachlan Pfeiffer, described the decision as a significant milestone for the Viva Energy Hub in Geelong and for Victoria’s energy security.
“Viva Energy’s gas terminal in Geelong is a transformative development for Victoria’s energy landscape, which will ensure a secure, flexible, and cost-effective gas supply, supporting renewable energy generation, and contributing to the economic well-being of Australia.
“One of the key advantages of our LNG terminal is its flexibility to scale up supply during periods of peak gas demand, ensuring that households and businesses in Victoria will have a reliable gas supply all year round.
“In addition, we expect the LNG terminal will be called on to supply gas for gas-powered electricity generation, providing important firming capacity to support the renewable energy sector as coal retires from the energy system,” he said.
Pfeiffer also said that 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 (FID) 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.
“We are working closely with potential offtakers 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,” he explained.
The terminal is a strategic asset that will not only deliver Victoria’s energy needs but will also support gas demands from South Australia, Tasmania and New South Wales through the interconnected south eastern Australia gas transmission pipeline network, Viva Energy claimed.
