On the back of Geelong’s proud manufacturing history, the city could be on the brink of delivering the gas needed by Victorian households and industry to help steer Victoria through the energy transition.
The development of an LNG terminal in Geelong is the leading infrastructure project capable of delivering more than half of Victoria’s gas demand. The project would be part of the Viva Energy Hub in Corio, which already manufactures more than 50 percent of Victoria’s fuel, delivering new jobs for Geelong – with about 150 needed during construction and 70 ongoing roles.
Subject to regulatory approval and Viva Energy’s final investment decision, the terminal could be completed in time to deliver first gas for winter 2028, when the Australian Energy Market Operator (AEMO) forecasts that structural shortfalls in gas supply will impact Victoria.
Viva Energy has completed additional assessments requested through the State Government’s Supplementary Statement process, which went on public exhibition today and will be available to the public for 30 business days, with a public hearing planned for December 2024. These are the final steps of the regulatory process to approve development of the gas terminal.
The supplementary information provided to the Minister for Planning incorporates additional information and assessments on the marine environment, air quality, noise and Aboriginal cultural heritage. These studies were undertaken by independent experts over 15 months.
Lachlan Pfeiffer, Viva Energy’s Chief Strategy Officer, said the project was consistent with both Federal and State policy positions on gas. “We know that the world is moving towards net zero emissions and that over time we will shift to low emission energy sources, but for the foreseeable future gas will play a critical role in providing reliable energy to those who need it and support the broader transition to renewable energy,” he said. “Our project is not about encouraging more gas use, but rather about ensuring a secure and reliable supply of this energy source for Victorian homes and industry for as long as it is needed.”
Mr Pfeiffer said Australia is embarking on one of the most significant energy transitions in its history. “Reliable energy is paramount during these shifts to ensure that we maintain public confidence in energy supply, as renewables further penetrate the market,” he said. “Without it, we risk alienating those who cannot afford to install new electrical appliances in their homes or electrify their businesses. We also need time for our electricity grid to develop the capacity required for the widescale electrification of homes, cars, and industry. Gas will play an essential role in providing dependable energy for many decades during this crucial period of transformation, and will remain vital to the manufacturing sector in the longer term.”
The Federal Government’s Future Gas Strategy released in May highlights the role of import terminals in mitigating gas shortfalls and providing a reliable back-up for renewable energy generation as more coal power plants close. The Victorian Government’s Gas Substitution Roadmap also recognises the need for new infrastructure to secure supply capacity while the transition is underway, which can be removed when gas demands diminish. Viva Energy welcomes announcements this week from the Victorian Government that gas will continue to play a critical role in providing security and reliability to millions of homes and businesses.
“Our project is the best, and perhaps only, complete solution for Victoria because it will deliver gas close to where it is most needed, with only a short connection to the existing gas pipeline network,” Mr Pfeiffer said. “The work we have undertaken in the EES and the Supplemenetary Statement shows that the project will have minimal environmental impacts and, importantly, avoid disturbing Ramsar wetlands.”
Over winter 2024, Victoria experienced cold, overcast and still periods, when solar and wind were not able to provide the energy people needed to heat their homes and run their businesses. That is where gas has been able to play an important back-up and firming role, coming online quickly and generating electricity only for the time it is needed. During the month of June, gas provided an average of eight percent of Victoria’s power generation, ranging to as high as 21 percent when it was required.
The key benefits of Viva Energy’s LNG terminal include:
- Proximity to large markets in Melbourne and Geelong, bringing the gas to where it is needed and avoiding the need for expensive pipeline duplication.
- Supply flexibility, so that the amount of gas delivered can flex with local usage and demands.
- Utilising an existing industrial port, minimising impact on the existing amenity, and avoiding disturbance to Ramsar wetlands.
- A unique circular cooling solution, reusing the cold water from the LNG terminal to cool processes within the refinery.
- A commitment to offset all Scope 1 and 2 emissions for the terminal’s construction and operational life.
The Viva Energy Hub brings together diverse projects to support the evolving energy needs of Victoria and south-eastern Australia, including the Geelong Refinery, an LNG terminal, a renewable hydrogen refuelling station, strategic fuel storage, and plans underway to produce lower-carbon, renewable fuels and a circular solution for the recycling of soft plastics.