AGL’s LNG import terminal in the ‘wrong location’ for a large industrial facility
There is overwhelming community opposition to AGL Energy’s proposed LNG import terminal in Victoria’s Mornington Peninsula.
Federal Health Minister Greg Hunt said there is overwhelming community opposition to AGL Energy’s proposed LNG import terminal in Victoria’s Mornington Peninsula, arguing it was the wrong location for a large industrial facility.
Mr Hunt, the member for Flinders which includes Mornington Peninsula, said he preferred either the Andrew-Forrest backed LNG import project in NSW’s Port Kembla or a Viva Energy proposal for Geelong given neither involve extensive pipelines.
“In my formal role, I speak with many local constituents about the matters they care most about. The proposed Crib Point Gas Import Jetty & Pipeline Project is one of them and my observation is that there is overwhelming community opposition to this proposal,” Mr Hunt said in a submission to the Victorian government which is conducting a full environmental assessment into the facility.
“My constituents tell me, and I agree, that Crib Point, and its surrounds is a distinctly non-industrial area that is known for its quiet and peaceful setting. Crib Point is the wrong location for this kind of large-scale industrial facility.”
More than 4000 submissions have been received with an Inquiry and Advisory Committee holding a directions hearing on Thursday ahead of a public hearings process starting on October 12.
AGL had originally targeted imports from its planned $250m LNG import terminal in the first half of 2020 as part of plans to help ease a domestic supply crunch in the state and meet a gas shortfall in its own portfolio.
However, opposition from local groups and a decision by the Victorian government to conduct the environmental assessment slowed momentum with first gas now likely in 2023 at the earliest.
AGL in February conceded it underestimated the challenge of developing Australia‘s first gas import plant but AGL boss Brett Redman said in March the facility was still needed to help ease a looming supply shortfall.
Mr Hunt said the Port Kembla and Geelong import plant concepts were better suited given the industrial footprint.
“A clear preferable alternative is Port Kembla in New South Wales and the other is near Corio in Victoria. These are vastly better alternatives from an environmental perspective and I note neither requires a 57 kilometre pipeline to get imported gas into the distribution network as this project proposes, through bush-land reserves and prime agricultural land,” Mr Hunt said.
The project could harm tourism and was incompatible with the local coastline.
“I have taken every possible opportunity to voice my objection to this proposal. I am also keenly aware of the large numbers of Mornington Peninsula residents who have also expressed their vehement opposition. Some issues find popular support both for and against. This is not one of them.”
AGL is one of four developers of LNG import terminals targeting east coast gas markets amid a backdrop of expected gas shortfalls as supplies fall from the Bass Strait.
Oil giant ExxonMobil in December canned the development of a gas import terminal in Victoria, blaming a lack of interest from customers to sign long-term contracts.