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  • Citing “unacceptable environmental effects,” the Victorian Government has rejected AGL Energy’s (AGL) proposal for an LNG import jetty at Crib Point
  • The $250 million proposal had faced significant opposition, with an environmental effects statements (ESS) gathering more than 6000 submissions
  • The terminal had been pushed as a potential solution to winter gas shortfalls anticipated to hit Victoria and NSW in the next few years
  • AGL said it is now is open to reaching a deal with one of the other companies aiming to build gas terminals in south-eastern Australia
  • AGL Energy is down 3.05 per cent to $9.86 per share

Citing “unacceptable environmental effects,” the Victorian Government has rejected AGL Energy’s (AGL) proposal for an LNG import jetty at Crib Point.

The $250 million proposal had faced significant opposition, with an environmental effects statements (ESS) gathering more than 6000 submissions. This culminated in a report by an independent inquiry and advisory committee that was sent to Planning Minister Richard Wynne in February.

“This has been an exhaustive, open and transparent process and this is the right outcome for the local community, the environment and Victoria as a whole,” Wynne said.

“It is probably one of the most intense EES processes we’ve had in this state in a very long time.”

AGL Energy had been hailing the terminal as a potential solution to winter gas shortfalls anticipated to hit Victoria and NSW in the next few years.

The Australian Energy Market Operator had sounded the alarm on shortages expected to hit in 2023 thanks to declining output from traditional gas fields in Victoria’s Bass Strait. However, it added earlier this week that any major impact would not be likely until 2026 should mining billionaire Andrew Forrest’s planned gas import terminal at Port Kembla go ahead.

Brett Redman, CEO of AGL Energy, said the company is open to reaching a deal with one of the other companies aiming to build gas terminals in southeastern Australia, including Forrest’s project and Viva Energy’s proposed terminal at an oil refinery in Geelong.

“We have been in, and I expect we will continue to be in, active discussion with every potential project if they have good volume and good price,” he said.

AGL Energy is down 3.05 per cent to $9.86 per share at 2:03 pm AEDT.

AGL by the numbers
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