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Viva Energy stated in a press release on Friday that the Victorian Government has delivered a positive assessment of the EES for its LNG project in Geelong, marking a “significant step” towards ensuring a secure energy future for the state.
“Victorian Planning Minister Sonya Kilkenny found that, subject to conditions, the project can proceed with acceptable environmental effects,” it said.
The new infrastructure includes an extension to Geelong refinery jetty, a permanently moored FSRU, and also a short 7km pipeline connecting it to the state’s gas grid.
Viva Energy’s gas terminal would have the capacity to supply in excess of 120 petajoules of gas per year, introducing new supply capacity, including a peak supply of up to 750 terajoules per day to meet the daily and seasonal gas demands of Victoria and southern Australia.
Back in 2022, Viva Energy entered into commercial agreements with GeelongPort for the planned FSRU-based LNG import terminal.
The deal included the construction and provision of the necessary pier and berthing infrastructure for the LNG import project.
Prior to that, Viva signed deals with Woodside and Hoegh LNG, now Hoegh Evi, for the planned FSRU-based terminal.
Under heads of agreements, Woodside planned to book regasification capacity while Hoegh planned to provide the FSRU for the project.
FID
Earlier this year, Viva Energy engaged LNG consultant Poten & Partners to secure the project’s FSRU.
The new terminal demands a vessel with a capacity between 160,000 cbm and 180,000 cbm of gas, capable of delivering up to 750 million standard cubic feet of gas per day.
Viva Energy said at the time that the environmental impact assessment from the Victorian state government would set the stage for the company to make a final investment decision (FID) by the end of 2025.
The company did not provide an update regarding the FID timeline in the new statement.
Viva Energy said the company would now work to lock in “large-scale gas market participants” in order to firm up the business case for FID.
“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 in the statement.
“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,” he said.