The price of natural gas in New South Wales is in the hands of the people owning the gas pipelines that bring it here from distant sources, but that is about to change. The green light has been given for the establishment of that long awaited shipping terminal which will see New South Wales open its doors to bulk natural gas from both Australia and other parts of the world. This terminal will handle seventy percent of New South Wales energy demand.
This $250 million gas terminal project will be sited at Port Kembla, right in the heart of Wollongong. There is every expectation that it will ease cost of living pressures by lowering gas prices. The project will be in the hands of Australian Industrial Energy which is in partnership with Andrew Forest's business, Squadron Energy.
For a long time gas price relief has hinged on New South Wales allowing " fracking " to access the bulk of natural gas in the ground under this state but that access could be at the price of neutralising agricultural land and disturbing the flow of natural aquifers. Australia is becoming the leading natural gas exporter to world markets and now New South Wales will have the means to tap into gas at a price that has previously passed us by.
This project will involve the building of a new natural gas berth for the huge ships that carry liquified natural gas around the world, a handling facility and new pipelines to distribute the gas to the existing gas network. It will deliver a jobs bonanza in the construction stage and open a new opportunity for those who train for this industrial field to gain rewarding permanent employment. There is also the expectation that this increase in gas supply will result in the development of a new electricity generating plant nearby to relieve our dependence on coal.
This is the natural transition of industrial services which moved out of Sydney harbour to Botany Bay and is fast handling that overflow at Port Kembla. Port Kembla loads both coal and grain for export supply and is the main import terminal for cars from overseas souces. The establishment of this gas facility will probably see the port further expanded as the New South Wales shipping gateway.
It will probably bring the end of using Port Kembla as a cruise ship terminal. Docking space in Sydney harbour has resulted in some cruise ships being relocated to Port Kembla but the danger factor of a gas terminal may not be compatible with that mixed use and the vista would not meet tourist expectations.
In fact this further expansion of Port Kembla will exert pressure for both the completion of the Maldon Dombarton rail link to western Sydney and fast rail to connect the giant Sydney job market with the ever expanding Illawarra home base. Port Kembla is fast becoming one of Australia's most important sea terminals.
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