Korean company knocks major gas project for Newcastle on the head

A proposed liquefied gas terminal for Newcastle has been knocked on the head.

Energy Projects and Infrastructure Korea (EPIK) has declared the nearly $600 million project as “economically unfeasible” and ceased their development activities.

The Australian Competition and Consumer Commission (ACCC) revealed the update in their latest gas report stating the company had actually ceased their development of the project back in September 2022.

EPIK had also noted that the “volatility of the international LNG market and high LNG benchmark pricing” had “placed a downward pressure on the economics of the project”.

The ACCC said in their gas update that “the risk posed by conditions in the international LNG markets is not unique to EPIK. Rather, all the proposed LNG import terminals are exposed to this risk. It is possible therefore that other proposals could be abandoned, or delayed until conditions improve”.

The major gas project was declared critical state significant infrastructure in 2019 by the NSW Government and was going to add 110-petajoules to NSW’s domestic market. It would’ve eventually accounted for 80 per cent of the state’s supply.

EPIK didn’t continue any further than their scoping report with no environmental impact statement completed for the project.