An Australian-led international consortium that includes two large Japanese companies has proposed building Australia's second liquefied natural gas import terminal, writes Russell Searancke.

Australian Industrial Energy (AIE) comprises local company Squadron Energy, Marubeni Corporation and JERA, reportedly the world's largest buyer of LNG.

The proponents have selected Port Kembla as the site in the state of what would be New South Wales' first LNG import terminal, which will include chartering a floating storage and regasification unit, construction of associated onshore and offshore facilities, and provision of gas to local customers in Australia's most populous state.