Dutch energy giant Vopak advances Victoria Energy Terminal to support Australia’s energy security
As Australia navigates one of the most complex energy transitions in its history, maintaining reliable and affordable energy supply has become a defining national priority. In Victoria, where strong population growth coincides with the retirement of ageing coal-fired power stations, pressure on the energy system is intensifying.
Against this backdrop, Vopak is advancing the Victoria Energy Terminal, a project designed to strengthen energy security while supporting Australia’s longer-term transition to a lower-carbon economy. The development also highlights the depth and relevance of Australia–Netherlands collaboration in critical infrastructure at a time when energy resilience is increasingly tied to economic stability.
Why this matters now
Victoria is Australia’s second most populous state, home to more than seven million residents and the country’s fastest-growing city, Melbourne. Demand for energy continues to rise as the population grows, industries electrify and the economy expands.
At the same time, the Australian Energy Market Operator has warned that Victoria could face structural gas shortages as early as 2029. While renewable energy capacity is expanding, the transition is not yet happening quickly enough to fully replace retiring coal generation. Gas therefore continues to play a vital role as a firming fuel, supporting intermittent renewables and ensuring reliable supply for households, businesses and essential services.
In this context, energy security is no longer just an energy policy issue. It is a matter of economic resilience, investment confidence, and social stability. Ensuring that Victoria has access to flexible, reliable gas supply during the transition period is increasingly seen as critical to avoiding price volatility and supply disruptions in the years ahead.
“Victoria Energy Terminal is designed as a temporary, transition-enabling solution that strengthens energy security today while supporting Victoria and Australia’s path to a lower-carbon future”
A targeted response to Victoria’s energy challenge
Vopak began examining Victoria’s emerging gas supply challenge in 2019, drawing on its extensive global experience in energy infrastructure and logistics. Based on this analysis, a floating liquefied natural gas import solution was identified as the most effective and flexible response.
The proposed Victoria Energy Terminal would use a Floating Storage and Regasification Unit to import LNG from the international gas market, connecting Victoria to both Australian and global gas networks. In effect, this creates a virtual pipeline that allows the state to access the most cost-effective gas available internationally.
Importantly, the project has been designed as a temporary solution. It requires no permanent onshore infrastructure, no new gas exploration and no large-scale pipeline expansions from other parts of Australia. The terminal could operate for at least 10 years but likely 20 or more, acting as a stabilising component of Victoria’s energy system during a period of transition.
By focusing on flexibility and reversibility, the project aligns with the understanding that gas is a transitional fuel, necessary to support the system today but not intended to lock in long-term fossil fuel dependence.
Dutch experience delivered at global scale
Royal Vopak brings more than four centuries of experience in storing products essential to everyday life. Today, the company operates 77 terminals across 23 countries along all major global trade routes, giving it a depth of experience that is unmatched in the Australian market.
This global capability is particularly relevant in a market like Australia, where there is no local company with comparable LNG import and terminal experience. Access to international markets and technical know-how has enabled a solution that is both fit for purpose and aligned with global best practice.
In late 2025, this capability was demonstrated when Vopak secured an exclusive agreement with Seapeak, a global leader in LNG shipping, to deliver the Floating Storage and Regasification Unit for the Victoria Energy Terminal. This partnership ensures access to a high-quality vessel and proven operational expertise, tailored specifically to Victorian requirements.
At the same time, Vopak brings a deep understanding of the Australian context. The company has operated in Australia for almost 70 years and employs more than 70 people across Victoria, New South Wales and the Northern Territory. This long-standing local presence has been central to navigating Australia’s regulatory environment and stakeholder expectations.
Working with government, regulators, and communities
Energy infrastructure projects of this scale in Victoria are subject to some of the most rigorous environmental and planning approval processes in the country. These processes often span several years and involve extensive environmental studies, particularly to protect marine and land-based biodiversity.
One of the key learnings from progressing the Victoria Energy Terminal has been the importance of early coordinated planning with government departments and regulators. Close collaboration has been essential to ensure that environmental management measures are robust, proportionate and aligned with regulatory expectations.
Equally important has been meaningful engagement with local communities and First Nations representatives. In Australia, there is a strong expectation that project proponents engage early, communicate openly and provide clear pathways for feedback. Ensuring that stakeholder input flows through to technical teams and transparently reporting how that feedback has been considered, has been a critical part of building trust and maintaining social licence.
Supporting the energy transition, not delaying it
Globally, Vopak is repositioning its portfolio to support the energy transition. Together with partners and customers, the company is investing in infrastructure for hydrogen, ammonia, CO₂, battery energy storage and low-carbon fuels and feedstocks.
The Victoria Energy Terminal aligns closely with this strategy. It has been planned in line with Victoria and Australia’s net zero ambitions and is explicitly intended as a transition-enabling project. Gas infrastructure, in this view, plays an important role in replacing coal and supporting electrification while renewable generation continues to scale.
One tangible example of this approach is the decision to power the marine terminal using electricity from the Victorian grid rather than gas from the vessel itself. As Victoria’s grid becomes increasingly renewable over time, the terminal’s carbon footprint will continue to decrease, supporting Vopak’s ambition to be climate neutral by 2050.
The project also reflects Vopak’s global investment priorities. In late 2025, the company committed EUR 2 billion to gas and industrial terminals and EUR 1 billion to energy transition infrastructure. The Victoria Energy Terminal strategically bridges these priorities, supporting energy security today while enabling the transition to a more sustainable energy system.
Economic impact and long-term collaboration
Beyond its role in energy security, the Victoria Energy Terminal is expected to deliver tangible benefits to the local economy. Located in regional Victoria, the project is forecast to create around 500 temporary jobs during construction and up to 80 ongoing roles during operations, providing a meaningful economic boost to the region.
More broadly, the project stands as a strong example of Australia–Netherlands collaboration in action. As a development of state significance, it has involved close cooperation with Victorian and Australian government leaders and decision-makers, building trusted relationships that extend beyond a single project.
Looking ahead, there is significant potential for further collaboration, particularly in offshore energy infrastructure. While several offshore projects are currently progressing through planning and approvals across Australia, none are yet operational. This emerging sector presents a clear opportunity for Dutch expertise, developed over decades in offshore and port-based infrastructure, to contribute to Australia’s next phase of energy development.
The Victoria Energy Terminal highlights the value of deep, experience-led partnerships between Dutch and Australian organisations. It demonstrates how Dutch innovation and global capability can support Australia’s energy resilience today, while laying the foundations for stronger trade, investment, and collaboration in the decades ahead.
We would like to thank Molly Campbell from Vopak for her help in bringing this article together, and for openly sharing Vopak’s perspective and insights on the Victoria Energy Terminal.
