The Victorian Government has delivered a positive environmental assessment on Viva Energy’s LNG terminal project in Geelong, marking a step forward for the state’s gas supply.
In her assessment of the project’s environmental effects statement (EES), Sonya Kilkenny, Victorian Minister for Planning, found that the potential impacts of the project can be managed with strengthened environmental management practices and amended mitigation measures are adopted.
The assessment advances the project towards Viva’s commercial decision to move forward, pending further regulatory approvals.
“We are striking the right balance between development and environmental responsibility through the rigorous and transparent EES process,” Ms Kilkenny said.
The new infrastructure – an extension to Geelong refinery jetty, a permanently moored floating storage and regasification unit (FSRU) and a short 7km pipeline connecting it to the state’s gas main – is expected to play a crucial role in maintaining the quality of life for Victorians and ensuring the stability of gas supply in south-eastern Australia.
Viva said the gas terminal would have the capacity to supply in excess of 120PJ of gas per year and introduce significant new supply capacity: peak supply of up to 750TJ per day to meet the daily and seasonal gas demands of Victoria and southern Australia. With construction of the terminal expected to take two years, it aims to provide a complete solution to the structural gas shortfalls forecast to impact Victoria from 2028 onwards.
The gas terminal unlocks a pathway to bring LNG from Australian gas fields or around the world, effectively acting as a virtual pipeline to deliver gas directly to the major Victorian markets of Melbourne and Geelong. Viva Energy said in addition to supporting flexible gas-fired electricity generation, it will ensure reliable supply for the more than 2 million households and 65,000 businesses in Victoria that rely heavily on gas for their daily needs and operations.
Lachlan Pfeiffer, Viva Energy Chief Strategy Officer, said the decision is a significant milestone for the Viva Energy Hub in Geelong and for Victoria’s energy security.
“Viva Energy’s gas terminal in Geelong is a transformative development for Victoria’s energy landscape, which will ensure a secure, flexible, and cost-effective gas supply, supporting renewable energy generation, and contributing to the economic well-being of Australia,” he said.
“One of the key advantages of our LNG terminal is its flexibility to scale up supply during periods of peak gas demand, ensuring that households and businesses in Victoria will have a reliable gas supply all year round. In addition, we expect the LNG terminal will be called on to supply gas for gas-powered electricity generation, providing important firming capacity to support the renewable energy sector as coal retires from the energy system.”
Pfeiffer said the company would now work to lock in large-scale gas market participants in order to firm up the business case for a final investment decision on the project.
“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,” he 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.”
