Comments Clearly Forecast PEP Decision, page-9

Barilarorecognises the NSW need for gas supply but rejects an Australian companyproposal to develop PEP11 while supporting EPIK;s (South Korea) proposal tobuild a gas terminal and LNG floating storage vessel in Newcastle for importationof gas

Thisenvironmental impact would be more significant with the Jetty, Floating StorageVessel, Supply Ships etc than developing a stationary offshore rig with a interconnecting30klm pipeline into the existing East Coast gas pipeline at Munmorah

www.portofnewcastle.com.au/news/nsw-government-support-a-boost-for-proposed-newcastle-gas-import-terminal/

Portof Newcastle today welcomed New South Wales Government support for a proposedliquefied natural gas (LNG) import terminal at the Port.

TheNewcastle GasDock project – with an estimated direct onshore investment of upto AUD$250M* at the Port – today received Critical State SignificantInfrastructure (CSSI) status from NSW Minister for Planning and Public Spaces,the Hon Rob Stokes MP.

Theannouncement today by Acting Premier John Barilaro and Mr Stokes recognises theneed to significantly increase local gas supply, promote competition betweensuppliers and put downward pressure on the State’s gas prices.

Portof Newcastle CEO Craig Carmody congratulated Minister Stokes and theBerejiklian Government on their support for regional economic development.

“Thisis a critical future-proofing project for the region. Projects such as the EPIKNewcastle GasDock project open a number of new trade opportunities, developcapability and support businesses and jobs across the Hunter Region and aroundNew South Wales,” Mr Carmody said.

Theproject – proposed by South Korean group EPIK – involves the use of an LNGFloating Storage and Regasification Unit (FSRU), a vessel designed to safelystore the liquefied product and then convert it into a useable gas forindustrial, commercial and residential customers in NSW.

The170,000m3 class FSRU will connect to a new jetty planned to be built on portland at Kooragang Island, enabling a connection to the existing East Coastnatural gas network.

“Weare working on a number of projects to diversify the Port and support importersand exporters to successfully compete in international markets,” Mr Carmodysaid.

“Thiscreates jobs and ensures more money is invested back into local communities.”‘

MrCarmody congratulated EPIK on the significant milestone as the company workstowards a final investment decision early next year.

“Portof Newcastle has been a global trade gateway for more than 220 years and thisproject introduces new trade and economic growth opportunities for the regionand NSW,” Mr Carmody said.

“Newcastlehas much to offer, including a deepwater shipping channel operating at 50% ofits capacity, significant port land available and enviable access to nationalinfrastructure such as rail and road.

“Ascustodians of our region’s critical asset, we are striving every day to createa safe, sustainable and environmentally and socially responsible Port for thefuture.”

EPIKFounder and Managing Director Jee Yoon said the company was pleased with theproject’s momentum. “EPIK’s primary objective is to deliver the mostcompetitive infrastructure solution for natural gas imports into NSW,” Mr Yoonsaid.

“WithCSSI status in hand, we are a considerable step closer to delivering thecritical infrastructure needed to bring new energy to NSW, providing access tolong-term, competitive gas supply to the region, safely powering our homes,driving industry forward and keeping prices low for everyone to enjoy.”

“Newcastlewas chosen because of its strategic location proximate to significantindustrial gas and power users, and access into the Sydney Short Term TradingMarket, allowing natural gas imported through the Newcastle terminal to reachusers throughout NSW and broader southeast Australian market at a competitiveprice point.

“Portof Newcastle’s support, along with that of the broader business and industrialsector, is greatly appreciated and of much value to the project development.”