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Highlights

  • The Victorian government has granted environmental approval for Viva Energy’s proposed LNG import terminal in Geelong.

  • The terminal will have an annual capacity of up to 160 petajoules — nearly 88% of Victoria’s projected 2024 gas demand.

  • Construction is expected to begin in late 2026, with completion targeted for 2028 to address the state’s forecasted gas shortfall.

The Victorian government has approved the environmental assessment for Viva Energy’s (ASX:VEA) proposed liquefied natural gas (LNG) import terminal in Geelong, clearing a major hurdle for a project aimed at bolstering the state’s energy security as it faces a looming shortfall in gas supply.

The terminal, which would be located at Viva Energy’s existing Geelong refinery site, is designed to import up to 160 petajoules of LNG per year — equivalent to approximately 88% of Victoria’s total gas consumption projected for 2024, according to government estimates. The approval allows the company to move ahead with further regulatory processes and towards a final investment decision.

The move comes amid increasing concern about gas availability in southern Australia. Both the Australian Energy Market Operator (AEMO) and the Australian Competition and Consumer Commission (ACCC) have warned of a structural gas supply shortfall in Victoria within the next few years if new sources are not brought online.

The project will include the extension of the existing refinery pier, a floating storage and regasification unit (FSRU) to convert imported LNG back into gas, a gas treatment facility, and a new pipeline linking the facility to the state’s main gas distribution network.

Construction is anticipated to commence in the second half of 2026, with completion expected in 2028—just in time to address the anticipated supply gap.

Lachlan Pfeiffer, Chief Strategy Officer at Viva Energy, said the approval was a critical milestone but noted that timing would remain a key challenge.

“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,” Pfeiffer said.