About Vopak’s Victoria Energy Terminal
Victoria is transitioning to a renewable energy future. Vopak propose to build a floating liquefied natural gas (LNG) import terminal to help address this shortage and secure energy supply as a part of Victoria’s transition.
The proposed Victoria Energy Terminal project is targeting a low environmental impact solution to facilitate liquefied natural gas (LNG) imports. This will provide energy security for the predicted shortfalls in the supply of natural gas to the state as we transition towards a renewable energy future and achieve zero net carbon by 2050.
The floating terminal concept (FSRU) would be located in the southwest of Port Phillip Bay, approximately 19km directly offshore from Avalon. It would be based at an existing anchorage site, with no dredging required, minimising the impact on marine life, flora and fauna. A new transmission line would connect into the Moorabool Terminal Station, supplying renewable power for the operation of the project.
A floating energy terminal avoids the overbuilding of long term legacy assets and minimises the risk of stranded assets as the FSRU can be repositioned for future use while the fixed assets could potentially be repurposed for the import of other renewable sources. An energy terminal also allows for secure and reliable supply for gas by the creation of a virtual pipeline that allows access to the global LNG market of which Victoria represents less than 1% on current annual demand.
The project is proposed to operate for a minimum period of 10 years from 2028, with future operations beyond that time to be determined by the success of the energy transition to renewable energy sources.
Vopak have submitted a referral application under the Environment Effects Act for the project to the Victorian Minister for Planning.
The Department of Transport and Planning (DTP) has published the reasons for the decision for an EES for the project, details of which can be found on their website.
At a glance
-
500 jobs during construction, up to 80 direct full-time jobs while operational
-
Facility targeted to be operational by 2028
-
Will run for a minimum of 10 years
-
Bridges the energy gap to renewables
-
FSRU moored 19km from Avalon shore
Benefits to the community and Victoria
The project will provide households, businesses, and industries with access to new sources of natural gas in Victoria and across southeastern Australia. It will underpin energy supply security by providing access to both the Australian and international LNG markets to complement local production in SE Australia as Victoria transitions to a renewable energy future.
The project will generate employment opportunities both directly related to its construction and operation and indirectly through increased demand for goods and services—around 500 jobs during construction and approximately 80 jobs during the operational phase. Some expertise will be imported from overseas and interstate, but the majority will be employed locally in vessel operations, construction, maintenance, plumbing, and electrical.
About the energy terminal
The Victoria Energy Terminal will use a floating vessel - a Floating Storage Regasification Unit (FSRU) - moored at an existing anchorage point in Port Phillip Bay, approximately 19km directly offshore from Avalon. The location of the site minimises the visual impact on local residents and communities.
The FSRU will receive liquefied natural gas (LNG) from import tankers, re-gasify it onboard, and transfer the gas via a subsea pipeline in Port Phillip Bay. The pipeline will transition onto farmland managed by Melbourne Water before connecting directly into the Victorian Transmission System.
It is estimated that there will be 20-50 deliveries a year, depending on how domestic supply from existing fields declines over the next decade, together with the speed of transition to new energy sources. Supply ships usually berth for 24 hours to unload the LNG.
An LNG tanker can be up to 300 metres long – similar in size to the FSRU, which is equivalent in size to a large cruise liner and stores up to 170,000 m3 of LNG (approximately a week of gas demand in winter for Victoria).
The terminal infrastructure will be designed with the future in mind, with the potential to import hydrogen.
-
Cruise Ship
335m
-
LNG Carrier
300m
-
Spirit of Tasmania
194m
-
Passenger Ferry
60m
-
Sail Boat
10m
About the site
Vopak spent considerable effort reviewing sites in Victoria before settling on Port Phillip Bay. This is the preferred location as it appropriately balances environment, marine and social amenity considerations, and will bring minimal disruption to normal bay activities, including shipping movements.
The mooring is approximately 19km east of the proposed shore crossing at Avalon, and 10km from the nearest point to the Port Phillip Bay shoreline at Werribee.
The subsea pipeline will meet land beyond the shoreline and continue to run underground through Melbourne Water farmland before connecting to the current gas pipeline infrastructure.
Project infrastructure
The project will include the following infrastructure:
A floating, moored vessel
A Floating Storage Regasification Unit (FSRU) will be moored at an existing anchorage point in Port Phillip Bay. To safely and securely moor the FSRU in its location and to transfer the gas from the FSRU, mooring dolphins (piled) and a marine platform will be constructed at the anchorage. The anchorage location is 10km from the nearest point to the Port Phillip Bay shoreline - the Western Treatment Plant in Werribee.
Pipeline
A new pipeline will transport the natural gas from the FSRU to the Victorian gas transmission network. The pipeline will be buried under the seabed of Port Phillip Bay for up to 19km, then transitioned under the shoreline to an onshore buried pipeline of approximately 8.5km, to tie into the proposed connection point to Victorian Transmission System (VTS). The pipeline construction across the sensitive coastal environment will be via a trenchless shore crossing – approximately 1.5km in length to avoid impacts to migratory and threatened fauna habitat.
Gas receiving station
A new gas receiving station adjacent to the South West Pipeline will inject nitrogen into the gas and meter the gas flowing into the South West Pipeline and subsequently the east coast gas market. The gas receiving station will be fenced and will include an air separation unit to produce nitrogen on site, rather than needing to truck or pipe nitrogen to the gas receiving station. The station will also include a receiver station to enable inspection of the pipeline to maintain its integrity.
Overhead transmission line
For the FSRU to operate a new overhead transmission line (powerline) is proposed to be built. This powerline will connect to the existing terminal station near Moorabool and will then go towards the coast. The required size of the powerline, its location and its pole design are currently being investigated.
Environmental impacts
Vopak has identified the mooring site approximately 19km offshore from Avalon North to minimise any potential environmental impacts. Importantly, no dredging is required for the berth or channel.
The location means there will be unconstrained marine navigation into Port Phillip Bay with benign met-ocean (combined wind, wave and climate) conditions.
We will minimise and avoid construction and infrastructure in areas of conservation at the Western Treatment Plant by using horizontal directional drilling for the shore crossing and pipeline. The timing of this activity will be scheduled around migratory birds to minimise impacts.
The mooring of an FSRU in Port Phillip Bay and the associated infrastructure will be subject to strict environmental controls, including an Environmental Effects Statement.
We are aware of a bird sanctuary to the south of the project and a marine farm bordering one of the pipeline routes and will work with those involved in these areas to mitigate any potential impact.
Project timeline
Meeting Victoria’s energy demand
Victoria is responsible for approximately 45 per cent of the total east coast gas demand. The Australian Energy Market Operator (AEMO) has forecast a structural gas shortage in Victoria by 2028 due to a ccontinued decline in production from Bass Strait compared to demand.
Renewable energy will eventually bridge the gap for energy security, but until then, the state needs a stable and reliable supply of gas.
Importing LNG bridges Victoria’s gas supply position and supports the targets of 50% renewables by 2030 and zero net carbon by 2045, with a considerably smaller footprint than the alternatives of developing new domestic gas in Victoria or large pipeline expansion projects to bring gas from northern Australia.
The FSRU would have an operating life of up to 20 years to support the state’s transition to renewables. Once the energy gap has been filled, the terminal will be decommissioned, and the floating vessel will depart the Bay. Any permanent assets will be removed where the environmental impact is minimised.