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AIE terminal gets government backing

The award of CSSI status was warmly welcomed today by Andrew Forrest AO, the lead investor in the Australian Industrial Energy consortium (AIE), which is developing the PKGT.

“Today’s announcement of CSSI status for AIE’s Port Kembla Gas Terminal is a powerful demonstration of the Berejiklian Government’s commitment to solving the State’s critical gas security challenges,”? said Mr Forrest.

“Australian manufacturers have asked us to work with them to solve their future gas supply issues and skyrocketing prices, which threaten their viability.

“We look forward to smartly overcoming those threats to business by developing the gas terminal in the shortest possible timeframe.”?

Mr Forrest’s Squadron Energy, is investing in AIE alongside Japan’s JERA Inc. and Marubeni Corporation.

The terminal will have the ability to supply in excess of 100 PJ/a, sufficient to meet more than 70 per cent of NSW’s total gas needs.

Construction of the terminal is likely to require a capital investment of between $200 million and $300 million, generate around 150 jobs during the construction phase and 40-50 ongoing roles.

With the CSSI determination received, AIE will now move to lodge its application for development consent, and continue its engagement with industrial customers, local community, Wollongong City Council and peak industry bodies.

Subject to planning approvals, AIE aims to complete the required Port Kembla berth upgrades and a short connection pipeline in time to deliver first gas to NSW industry in early 2020.

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