Victoria Energy Terminal is a proposed floating gas import terminal in Port Phillip Bay.

Located about 20 kilometres offshore from Avalon near Geelong, it would process liquefied natural gas (LNG) and connect it to Victoria’s network using an underwater pipeline to feed into the existing supply onshore.

About the project

While Victoria shifts towards renewable energy, natural gas continues to play a key role in providing a reliable and flexible energy source for homes, transport and industry.

Vopak proposes to develop a floating liquefied natural gas (LNG) import terminal to provide a secure, affordable and reliable solution to Victoria’s gas supply shortfall.

Victoria Energy Terminal would include:

  • Floating Storage Regasification Unit (FSRU) - which looks like a large ship, similar to those anchoring and traveling in the bay now

  • Marine terminal to moor the FSRU

  • Gas pipeline

  • Gas receiving station (GRS)

  • High voltage (HV) power infrastructure

  • Electrical substations and a terminal station.

The marine terminal would operate for a minimum of 10 years or however long it is needed.

Natural gas would be transferred through a gas pipeline to be processed at the GRS to meet Australian Energy Market Operator (AEMO) specifications. After processing, the gas would enter the Victorian Transmission System (VTS) for use by residential, commercial and industrial customers. 

Image: Artist's concept of the FSRU and LNG carrier at the marine terminal. 

Project infrastructure

Floating storage regasification unit (FSRU)

The FSRU is a floating vessel that stores and converts LNG back into its gaseous state. The FSRU would be secured using four berthing dolphins, designed to moor the vessel and maintain its position during tidal and weather changes. The FSRU could sail away from the terminal at any time if necessary.

LNG carriers arriving from other parts of Australia or the world would berth alongside the FSRU.

The FSRU would receive LNG via flexible hoses, store LNG in insulated onboard tanks, convert it from liquid to gas and transfer the gas into the subsea pipeline for delivery to shore.  

Seapeak is partnering with Vopak to deliver the vessel for the FSRU.

Image: Artist's concept of the FSRU and LNG carrier at the marine terminal. 
Image: Artist's concept of the infrastructure for the gas receiving station.

Gas receiving station

A gas receiving station would be constructed near the existing South West Pipeline next to the Princes Freeway.

The purpose of the gas receiving station would be to make sure that the gas meets safety, quality and operational requirements before entering the Victorian network.

The gas receiving station facility would occupy about six hectares of land owned by Melbourne Water.

Electrical infrastructure

To operate the FSRU, marine terminal and onshore facilities, the project requires a reliable connection to the existing electricity grid.

Electricity would be sourced from the existing electricity grid and sent offshore through underground and subsea HV power cables.

The electricity source would start at a new Lara Terminal Station, which is proposed to be constructed, owned and operated by AusNet.

A 220 kilovolt underground cable would be constructed between the Lara Terminal Station and the onshore substation. The substation would step down the electricity voltage and provide electricity to the gas receiving station, the marine terminal and the FSRU. There are currently two alternatives being considered for the location of the substation:

  • The Avalon site on Beach Road

  • A site adjacent to the gas receiving station

The HV cables would then travel offshore to the marine terminal.

AusNet would deliver and operate the electrical infrastructure.

Image: Map of the study area for the electrical infrastructure.