Viva Energy is making important progress to deliver an LNG terminal to address warnings that the
market is at risk of gas supply shortfalls, cementing the important role the Viva Energy Hub will play in
the future of energy in Victoria.
Viva Energy has completed additional assessments requested through the State Government’s
Supplementary Statement process, which went on public exhibition today and will be available to the
public for 30 business days with a public hearing planned for December 2024. These are the final steps
of the regulatory process which, if approved, will allow Viva Energy to proceed with the development of
the gas terminal in Geelong.
The supplementary information provided to the Minister for Planning incorporates additional information
and assessments on the marine environment, air quality, noise and Aboriginal cultural heritage. These
studies were undertaken by independent experts over 15 months.
Subject to the regulatory decision, commercial negotiations and Viva Energy's final investment decision,
construction could commence in 2026 to deliver first gas for winter 2028, when the Australian Energy
Market Operator (AEMO) forecasts that structural shortfalls in gas supply will impact the state.
The Geelong LNG terminal would have the capacity to supply more than half of Victoria's current gas
demand, providing the security and reliability that millions of homes and businesses need. It would also
enable any surplus gas to flow to SA, NSW and Tasmania using existing pipeline infrastructure.
Lachlan Pfeiffer, Viva Energy’s Chief Strategy Officer, said that the reliable supply of gas is critical
through the energy transition. "Australia is embarking on one of the most significant energy transitions in
its history,” he said. “Reliable energy is paramount during these shifts to ensure that we maintain public
confidence in energy supply, as renewables further penetrate the market. Without it, we risk alienating
those who cannot afford to install new electrical appliances in their homes or electrify their businesses.
We also need time for our electricity grid to develop the capacity required for the widescale electrification
of homes, cars and industry. Gas will play an essential role in providing dependable energy for many
decades during this crucial period of transformation and will remain vital to the manufacturing sector in
the longer term."
The Federal Government's Future Gas Strategy released in May highlights the role of import terminals in
mitigating gas shortfalls and providing a reliable back-up for renewable energy generation as more coal
power plants close. It also aligns with the Victorian Government’s Gas Substitution Roadmap, which
recognises the need for new infrastructure to secure supply capacity while the transition is underway,
and which can be removed when gas demands diminish. Viva Energy welcomes announcements this
week from the Victorian Government that gas will continue to play a critical role in providing security and
reliability to millions of homes and businesses.
"Our project is the best, and perhaps only, complete solution for Victoria because it will deliver gas close
to where it is most needed, with only a short connection to the existing gas pipeline network," Mr Pfeiffer
said. “The work we have undertaken in the EES and the Supplemenetary Statement shows that the
project will have minimal environmental impacts and, importantly, avoid disturbing Ramsar wetlands. The
facility is sensible infrastructure – we are not encouraging more gas use, but rather ensuring a secure
supply of this energy source for Victorian homes and industry for as long as it is needed, as well as a
reliable back-up for renewable energy generation."
Over winter 2024 Victoria experienced cold, overcast and still periods, when solar and wind were not
able to provide the energy people needed to heat their homes and run their businesses. That is where
gas has been able to play an important back-up and firming role, coming online quickly and generating
electricity only for the time it is needed. During the month of June, gas provided an average of eight
percent of Victoria’s power generation, ranging to as high as 21 percent when it was required.
The key benefits of Viva Energy’s LNG terminal include:
- Proximity to large markets in Melbourne and Geelong, bringing the gas to where it is needed and
avoiding the need for expensive pipeline duplication.
- Supply flexibility, so that the amount of gas imported can flex with local usage and demands.
- Utilising an existing industrial port, minimising impact on the existing amenity, and avoiding
disturbance to Ramsar wetlands.
- A unique circular cooling solution, reusing the cold water from the LNG terminal to cool the
refinery.
- A commitment to offset all Scope 1 and 2 emissions for the terminal’s construction and
operational life.
- Victoria’s most advanced gas supply project, with the best chance of meeting winter 2028
structural supply shortages.
The Viva Energy Hub brings together diverse projects to support the evolving energy needs of Victoria
and south-eastern Australia, including the Geelong Refinery, an LNG terminal, a renewable hydrogen
refuelling station, strategic fuel storage, the supply of lower carbon fuels and a circular solution for the
recycling of soft plastics.
Media Enquiries
Michael Cave
T: +61 409 647 910
E: michael.cave@vivaenergy.com.au
About Viva Energy
Viva Energy (ASX: VEA) is a leading convenience retailer, commercial services and energy infrastructure business, with a history spanning more than 120 years in Australia. The Group operates a convenience and fuel network of almost 900 stores across Australia and supplies fuels and lubricants to a total network of nearly 1,500 service stations.
Viva Energy owns and operates the strategically located Geelong Refinery in Victoria, and operates bulk fuels, aviation, bitumen, marine, chemicals, polymers and lubricants businesses supported by more than 20 terminals and 90 airports and airfields across the country. www.vivaenergy.com.au