Victoria Approves LNG Terminal to Secure Future Gas Supply

Viva Energy has received a major boost for its proposed LNG import terminal in Geelong, after Victorian Planning Minister Sonya Kilkenny gave the project a positive environmental assessment. The review concluded that the project’s impacts could be effectively managed if enhanced environmental safeguards and mitigation strategies are adopted.

The approval advances the project toward a final investment decision, pending other regulatory clearances. Minister Kilkenny highlighted the state’s commitment to balancing energy development with environmental responsibility through a transparent and thorough review process.

The planned infrastructure includes an extension to the existing refinery jetty in Geelong, a permanently moored floating storage and regasification unit (FSRU), and a short 7km pipeline linking it to Victoria’s main gas network. Once complete, the terminal will play a key role in securing the state's energy future.

With the capacity to deliver over 120 petajoules of gas per year and supply up to 750 terajoules per day during peak periods, the project is designed to address the state’s expected gas shortfalls from 2028 onwards. Viva Energy describes the terminal as a “virtual pipeline” that can bring in gas from Australian fields or global markets.

The terminal is expected to support more than 2 million Victorian households and over 65,000 businesses that depend on gas for heating, cooking, and industrial operations. It will also enhance supply for gas-powered electricity generation, providing essential backup as the state transitions away from coal-fired power.

The Victorian Government estimates that the project will generate up to 200 construction jobs and around 70 permanent roles once operational, delivering a local economic boost while strengthening long-term energy resilience.

Viva Energy Chief Strategy Officer Lachlan Pfeiffer described the decision as a turning point for Victoria’s energy future. He emphasized the terminal’s flexibility to scale up supply as needed, helping to stabilize prices and support the energy grid.

With construction expected to begin in late 2026 and major works scheduled for 2027, Viva Energy is actively engaging with potential gas buyers and partners to solidify the business case. The company is exploring various financial and commercial models to ensure the project moves forward on schedule.

Victorian Minister for Energy and Resources, Lily D’Ambrosio, said the terminal will play a key role in supporting sectors that can't yet transition to electric alternatives. While encouraging electrification for homes and businesses, she stressed the need to protect industrial users through a secure and affordable gas supply.

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