Viva Energy Gas Terminal Project Halted Amid Reservation Plan Uncertainty
Viva Energy's $5 billion gas terminal in Geelong, Victoria is no longer certain to proceed. Despite clearing state and federal approvals, the project has been put on hold due to uncertainty caused by the Albanese government's gas reservation plan. The plan initially proposed a fixed 20% reservation of liquefied natural gas for domestic markets, but was watered down last week to require exporters to reserve up to 20%. However, the gas industry warns that this still risks destroying investment.
The company's decision comes as a result of the government's revised plan, which has created uncertainty in the market. The original proposal would have seen Viva Energy's project become one of the largest gas terminals in Australia. However, with the changes to the reservation plan, the project is now under review and its future remains uncertain.
The industry warns that the plan still risks destroying investment, despite the government's efforts to soften the blow. The revised plan aims to balance domestic energy needs with exports, but the gas industry remains skeptical about the impact it will have on the market.