The proposed Victoria Energy Terminal project is targeting a low environmental impact solution to facilitate liquefied natural gas (LNG) imports. This will provide energy security for the predicted shortfalls in the supply of natural gas to the state as we transition towards a renewable energy future and achieve zero net carbon by 2050.

The project is proposed to operate for a minimum period of 10 years from 2026, with future operations beyond that time to be determined by the success of the energy transition to renewable energy sources.   

The floating terminal concept (FSRU) would be located in the southwest of Port Phillip Bay, approximately 19km directly offshore from Avalon.  It would be based at an existing anchorage site, with no dredging required, minimising the impact on marine life, flora and fauna. A new transmission line would connect into the Moorabool Terminal Station, suppling renewable power for the operation of the project.  

A floating energy terminal avoids the overbuilding of long term legacy assets and minimises the risk of stranded assets as the FSRU can be repositioned for future use while the fixed assets could potentially be repurposed for the import of other renewable sources.  An energy terminal also allows for secure and reliable supply for gas by the creation of a virtual pipeline that allows access to the global LNG market of which Victoria represents less than 1% on current annual demand.  

We have submitted a referral application under the Environment Effects ACT 1978 for the project to the Victorian Minister for Planning, to determine whether an Environment Effects Statement (EES) is required. 

DELWP have accepted the submission and have published on their website

The submission of the referral application is the result of environmental studies, key stakeholder and local community engagement and reflects our commitment to protecting the environment and understanding the needs of the local community.  

We understand that there are many different views in the community on the best approach to securing energy for Victorians in the future and we will continue to liaise with key stakeholders, community and residents along Port Phillip Bay to inform the project.