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Victoria’s first gas-import terminal a step closer

By Kieran Rooney

Victoria’s first gas-import terminal in Corio Bay has won conditional approval from the Allan government as it seeks to prevent damaging winter shortages in the state.

Speaking at the Victorian Chamber of Commerce’s Autumn Ball on Thursday night, Premier Jacinta Allan said her government would pave the way for Viva Energy’s proposed liquified natural gas import terminal to get off the ground.

Premier Jacinta Allan made the announcement at a VCCI event.

Premier Jacinta Allan made the announcement at a VCCI event.Credit: Joe Armao

It was the latest in a series of energy-related announcements made this week.

Viva Energy, which supplies petrol and diesel and owns the Shell service station business, has been waiting for a decision from the government, due this month.

Planning Minister Sonya Kilkenny released the Environmental Effects Statement for the project on Thursday, finding it was possible to go ahead with some protections in place.

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Viva can now move forward with finance plans for the project and any required regulatory approvals.

If it goes ahead, the project would be able to receive 160 petajoules of gas a year, about 80 per cent of the state’s consumption in 2024.

Viva Energy – owner of the Geelong oil refinery – has proposed extending a pier where it would park a vessel capable of receiving shipments of liquefied natural gas (LNG) from other parts of Australia or overseas and turn it back into vapour.

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Environmentalists and community members have argued Viva’s project is too close to residential areas and fear it will entrench the state’s use of fossil fuels.

Victoria has been more actively discussing the need for gas import terminals over the past year amid warnings of shortfalls in the state as early as winter 2028.

The proposals have attracted some criticism because Australia has significant gas reserves and there are concerns that it would expose consumers to international price fluctuations.

The Viva Energy refinery in Geelong.

The Viva Energy refinery in Geelong.

Other parts of the gas industry have instead pushed for better infrastructure to connect states and provide Victoria with local supplies.

But the terminals would provide a faster solution.

Earlier this year, Ports Victoria complained that Viva had not yet provided enough information about how the project would affect shipping in the region.

Energy Minister Lily D’Ambrosio said gas was part of the energy transition but prices were going up as supply dwindled.

“That’s why we’re securing gas supply and helping families and businesses that can go electric slash their energy bills, freeing up gas supply for industries that can’t make the switch,” she said.

Victorian Greens member for Western Victoria and co-Deputy Leader, Dr Sarah Mansfield, said the announcement was devastating.

“Victorian Labor have turned their backs on our bay environment, on the health and safety of communities in Geelong, and on our climate,” she said.

“They have failed to listen to thousands of community members, environment groups, and experts, instead selling out to the fossil fuel lobby. It’s unforgivable.”

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Original URL: https://www.watoday.com.au/national/victoria/victoria-s-first-gas-import-terminal-a-step-closer-20250529-p5m3ed.html