Government approval for Viva Energy’s $250m gas terminal brings project one step closer
Industry and environmental groups have reacted strongly to the government’s approval of a $250m gas terminal in Corio Bay, with one supporter saying Geelong could become the “energy capital of east coast Australia” as a result.
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The state government’s approval of a floating gas import terminal in Corio Bay has been met with a mixed response, with industry welcoming a decision that has left environmental groups “incredibly disappointed”.
Premier Jacinta Allan announced the approval at a business event in Melbourne on Thursday night, highlighting the move as proof her government was not solely focused on renewable energy as it works towards net zero emissions by 2045.
Viva Energy proposed the $250m project in 2020 and the government’s ruling means the company can progress the project ahead of other regulatory approvals and a final investment decision.
The liquefied natural gas (LNG) terminal would create up to 200 jobs during construction and approximately 70 ongoing positions.
State planning minister Sonya Kilkenny concluded the potential environmental effects could be acceptably managed.
Viva’s Lachlan Pfeiffer described the decision as a significant milestone for Victoria’s energy security considering the Australian Energy Market Operator has forecast a gas shortfall from 2028.
“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,” he said.
“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.”
Geelong Manufacturing Council boss Jennifer Conley said the proposed terminal could position Geelong as the “energy capital of east coast Australia”.
“Gas is currently the only viable cleaner alternative to coal in terms of providing baseload electricity security – firming the grid when renewables are not available – and this decision is critical to support that transition,” she said.
Ms Allan unveiled the decision at the Victorian Chamber of Commerce and Industry’s (VCCI) Autumn Ball, attended by a host of business heavyweights.
VCCI chief executive Paul Guerra said it sent a clear signal that the government recognised the urgent need for a reliable, affordable and secure gas supply.
“A terminal capable of supplying Victoria for nearly a year is a significant buffer and one that gives confidence to industry and investors alike,” he said.
“This is also a major boost for Geelong. It means more jobs, more investment and stronger energy infrastructure in one of our key regional centres.”
The Viva terminal allows for up to 160 petajoules of gas a year to be imported and stored from interstate or overseas – up to 88 per cent of the state’s annual gas use.
The project would include an LNG storage ship, an extension of the Geelong refinery pier, and a 7km pipeline to connect to the existing network.
An alliance of environmental groups have held multiple protests and Geelong Sustainability’s Jane Spence called on the government to invest in ambitious electrification and renewable energy solutions.
“The proposed gas import terminal is not just a climate risk – it is an economic gamble that could leave Victorians worse off,” she said.
“We are incredibly disappointed by this outcome in the face of considerable community opposition.”
Lauren Dillon from the Australian Conservation Foundation raised concern about the impact of additional dredging.
“Only a small dredging footprint was assessed next to the refinery, which ignores all of the likely dredging needed for tanker access,” she said.
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Originally published as Government approval for Viva Energy’s $250m gas terminal brings project one step closer
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