Australia’s Viva Energy has delayed the final investment decision on its proposed liquefied natural gas import terminal in Victoria, as prospective buyers refuse to sign long-term offtake deals.

According to news outlet The Australian, buyers are hesitant to commit to imported LNG, citing policy uncertainty, questions over future supply, and the risk of locking into multi-year contracts.

Retailers and industrial users have also shifted towards spot purchases, making it difficult for developers to secure the firm commitments needed for FID.

Another factor impacting the project is the ongoing government review of east coast gas rules, including potential changes to the Australian Domestic Gas Security Mechanism, pipeline access arrangements, and contract transparency.

In response to market participants who continue to wait for clarity before entering long-term agreements, Viva said it had adjusted its timeline to “meet customer and market needs.”

The terminal, which was approved in May by the state-government, is expected to enable the shipment of 160 petajoules of LNG per year. This would make up around 88% of the state’s total gas consumption.

The retreat of Viva Energy was welcomed by environmental groups, who said the decision to lock in gas infrastructure for decades via an import terminal “does not make economic sense” and made the case for renewable alternatives.

“[We are calling] for urgent investment in renewable energy and transmission infrastructure that will deliver clean and affordable power for Geelong and Victoria,” said Jane Spence, CEO of Geelong Sustainability.

Others highlighted the dangers of rushing projects. One campaigner cited the 2011 dredging disaster in Gladstone, Queensland, where massive sediment leaks during a dredging operation were linked to marine life deaths and the destruction of the local fishing industry.

“We don’t want those mistakes repeated here, and that means taking the time to properly scrutinise all of the risks,” said Lauren Dillon, spokesperson for ACF Geelong.

According to a Viva Energy spokesperson, the company is now expected to make a final investment call in 2026.

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Australia’s evolving gas landscape, from east-coast supply risks to new LNG import proposals, is reshaping demand for industrial gases and equipment. For detailed data and market insights, access gasworld Intelligence’s Australia and New Zealand Pulse report.