Port Kembla approves new terminal for liquid bulk imports to serve inland market

Port Kembla has received approval for a new $185 million liquid bulk terminal that will handle LNG imports and industrial gases, positioning the port as a critical energy transition infrastructure node that can supply the Illawarra's heavy industrial sector with low-emissions fuels as the region decarbonises.

The terminal, to be developed by Port Kembla Gas Terminal Pty Ltd on the southern end of the inner harbour, will have an initial storage capacity of 160,000 cubic metres of LNG with expansion capability to 250,000 cubic metres. Industrial gases including hydrogen, ammonia, and nitrogen will also be handled at the terminal as the market for these products grows in response to decarbonisation pressure across the steel, manufacturing, and transport sectors.

NSW Ports chief executive Nathan Hugh said the terminal approval reflected Port Kembla's evolution from a traditional steel export hub to a genuine energy port capable of serving both legacy industrial and emerging clean energy markets. "Port Kembla has a future in both steel and energy, and this terminal confirms its role in the second pillar," he said.

The development will create approximately 180 construction jobs and 45 permanent operational positions. The terminal operator is in discussions with BlueScope and two other Illawarra industrial users about long-term supply agreements that would underwrite the investment's commercial case.

The environmental approval process identified the terminal's design as best-practice for liquid bulk storage facilities and required minor adjustments to the stormwater management system and safety buffer zones before consent was issued. Construction is expected to begin next year, with commissioning targeted for 2027.

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