The federal government has granted environmental approval for Viva Energy's (ASX:VEA) proposed liquefied natural gas import terminal in Geelong.
The pivotal authorisation, issued under the Environment Protection and Biodiversity Conservation Act, marks a regulatory milestone for the project.
It follows the Victorian government's previous endorsement of the terminal’s environmental effects statement, effectively clearing the path for Viva—operator of one of the country’s two remaining oil refineries—to move towards a final investment decision.
Proponents of the terminal argue it is a vital safeguard against looming energy deficits.
Viva Energy maintains that the facility is the most advanced of its kind in the state, designed to inject a reliable gas supply into the south-east coast as traditional reserves in the Bass Strait continue to dwindle.
As one of four proposed import hubs, the project aims to stabilise a volatile market and head off potential local shortages that threaten industrial and domestic consumers alike.
However, the approval has sparked a sharp backlash from environmental advocates and local community groups.
Critics, including Environment Victoria and Geelong Renewables Not Gas, expressed dismay over the decision, citing the terminal's proximity to protected Ramsar wetlands.
They warn that the infrastructure could cause irreparable ecological damage to Corio Bay's delicate marine biodiversity.
At the time of reporting, Viva Energy's share price was $2.50.