Venice Energy LNG import terminal at Port Adelaide gets planning approval

SA will buy gas from anywhere in the world, with carriers to dock at Port Adelaide under a controversial plan approved by government.

A $250m project to import gas by sea to South Australia has received planning approval from the state government.

Up to 350 construction jobs will be created in the Venice Energy plan to build a liquefied natural gas import terminal at Outer Harbor.

Venice Energy managing director Kym Winter-Dewhirst said the project will insulate SA from the risks of gas shortages that are emerging in eastern states and help stabilise prices.

The large-scale gas plant will be the first in the world to be powered by renewable electricity.

“We will open the state to the international gas market and diversify local gas supplies, especially during peak periods,” Mr Winter-Dewhirst said.

Venice has commercial partners who have supported the development to this point and will provide equity and debt financing.

“This approval triggers access to the next tranche of funds which will take us through to a final investment decision and financial close,” he said.

“In parallel, we’re in a process to list on the stock exchange, about the middle of next year.”

Financial partners are confidential at this stage.

An artist's impression of the proposed liquefied natural gas import terminal to be built at Outer Harbor. A floating storage and regasification unit would be semi-permanently moored, while LNG carriers would deliver the fuel.

Venice will proceed with a feasibility study into changing the 680km SEA gas pipeline to Victoria to be bi-directional, to enable Victoria to import gas from SA.

The project was assessed by the State Commission Assessment Panel which made a recommendation to Planning Minister Josh Teague.

The panel heard objections from energy analyst Bruce Robertson on climate change grounds, from Friends of Gulf St Vincent member Mark Pierson over dredging concerns and oyster growers’ representative Steve Bowley on pollution risks.

“This planning approval is subject to several conditions, including that the company obtain certain licences, permits and authorisation from the Environment Protection Agency,” Mr Teague said.

Mr Winter-Dewhirst said the conditions were expected and manageable.

The project requires deepening the existing dredged channel into the harbour.

Currently, it is 14m deep to berth 8, then 9m. The company would pay for the 14m section to be extended to berth 10, with dredged material dumped out deep in the Gulf on a sandy-bottomed area monitored by the EPA.

Venice has engaged Austral Constructions, a marine infrastructure specialist, which will establish an Adelaide office to manage construction.

Venice Energy managing director Kym Winter-Dewhirst.

Planning Minister Josh Teague.

“We’ve committed to using local contractors as much as we can,” Mr Winter-Dewhirst said.

This includes talks with GFG on steel from Whyalla.

The terminal would have two berths – one to dock LNG carriers and one for a semi-permanently moored ship where the supercooled liquid is regasified. The regasification ship would be chartered from international operator GasLog.

Onshore infrastructure includes pipelines to connect into the main SA network.

Venice would toll companies to use its facilities.

“We’re agnostic about where the gas would come from,” Mr Winter-Dewhirst said.

“It could be from off the WA coast, or the Singapore hub, or other sources.”

SA Energy and Mining Minister Dan van Holst Pellekaan welcomed the approval.

“This is another vote of confidence in SA’s energy sector which is delivering investment and creating jobs,” he said.