By Emma Koehn
The New South Wales government has given a planning approval green light to a $250 million gas terminal project at Port Kembla with NSW Deputy Premier John Barilaro asserting it will help cost of living pressures by lowering gas prices.
The project will be completed by Australian Industrial Energy, which has a partnership with Andrew Forrest's gas business Squadron Energy.
Model of gas terminal site.
Squadron Energy chief executive Stuart Johnston said in a statement the project presents a "real opportunity for NSW to take control of its gas supply challenges".
The project developers will now focus on "closing commercial developments with customers" prior to a final investment decision being announced in the middle of the year, Mr Johnston said.
Mr Barilaro said the project would make the state "more self-sufficient when it comes to energy".
The project will involve building a new berth at Port Kembla for liquefied natural gas (LNG) carriers, a handling facility and a new pipeline to connect to the existing gas network.
Minister for Energy and Environment Matt Kean said the terminal could supply up to 70 per cent of the state's gas demand and could provide energy bill relief to small businesses and customers.
The gas importation project was labelled "Critical State Significant Infrastructure" last year, meaning the Planning Minister has decided the project is essential for "economic, environmental or social reasons".