Viva Energy secures Victorian approval for LNG import terminal
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The news: The Victorian government has granted environmental approval for Viva Energy’s proposed natural gas import terminal in Geelong amid fears the state is facing an energy shortfall.
The numbers: The gas terminal will have the capacity to import up to 160 petajoules of liquefied natural gas (LNG) per annum, approximately 88% of Victoria’s 2024 gas consumption, according to the state government.
The context: Both the Australian Energy Market Operator and the Australian Competition and Consumer Commission expect Victoria to face structural shortages of gas supply within the next few years.
Construction of the terminal is expected to start in the second half of 2026 and take two years to complete.
The project will include an extension of the existing refinery pier, a storage unit for converting LNG back into gas, a treatment facility, and a pipeline to connect the storage unit to the state's main pipeline.
Viva Energy can now progress towards a final investment decision and other regulatory approvals.
What they said: “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,” Viva Energy chief strategy officer Lachlan Pfeiffer said.
“We are working closely with potential off-takers 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.”
Victoria’s Minister for Energy and Resources Lily D’Ambrosio said: “Gas is part of our energy transition, but supply is dwindling and prices are going up.”
“That's why we're securing gas supply and helping families and businesses that can go electric slash their energy bills, freeing up gas supply for industries that can’t make the switch."
The sources: ASX, Viva Energy media release, Victorian government media release
