AGL Energy Limited (AGL) has confirmed it will cease any further development of the proposed liquified natural gas (LNG) import jetty at Crib Point. This follows the Independent Advisory Committee (IAC) findings and the Victorian Planning Minister’s determination on 30 March 2021 that the project would have unacceptable environmental effects.

AGL takes its environmental obligations seriously and works cooperatively with all regulatory agencies to ensure we meet all regulatory requirements and engage with the communities where we operate, so as to respond to their concerns.

From the outset, AGL recognised both the opportunity of the site at Crib Point and the environmental standards we needed to meet in a location of this kind. AGL presented a scientifically sound case, backed by experts, which demonstrated that the potential environmental effects were manageable. AGL acknowledges the IAC findings and Minister’s determination.

Engagement with the community and relevant parties has been integral to this process and AGL thanks those involved for their participation.

AGL has a highly flexible gas portfolio and a supply strategy which will enable customer demand to be met from existing and new domestic supply sources and proposed third party regasification projects, leveraging LNG supply options developed for the Crib Point Gas Import Terminal Project.

AGL previously estimated total committed or incurred expenditure on the project at $130 million. Of this amount, $22 million has been expensed to date. As a result, AGL expects to recognise a pre-tax loss of up to $108 million as a Significant Item in its FY21 financial statements.

About AGL

AGL is a leading integrated essential service provider, with a proud 184-year history of innovation and a passionate belief in progress – human and technological.

We deliver 4.2 million gas, electricity, and telecommunications services to our residential, small and large business, and wholesale customers across Australia.

We operate Australia’s largest electricity generation portfolio, with an operated generation capacity of 11,208 MW, which accounts for approximately 20% of the total generation capacity within Australia’s National Electricity Market.