The last time Viva Energy’s proposed terminal was submitted for permitting, it met strong resistance from environmentalists and some community members, who argued it was too close to residential areas and schools, and feared it would set back Australia’s climate ambitions by entrenching the use of harmful fossil fuels. In 2022, the Victorian government said Viva would be required to submit further information on the environmental impact.

Wyatt on Tuesday expressed confidence it could clear environmental hurdles when it is put out for public consultation again.

With gas shortfalls approaching and the long lead time it typically takes to develop new gas production fields, Wyatt said an LNG import terminal was among the only options left for Victoria to avert an energy crisis.

“There is an increasing recognition that we need to get on with it,” he said.

Another project in NSW, which is being built by billionaires Andrew and Nicola Forrest’s Squadron Energy, is looming as Australia’s first LNG import facility. Construction of the Port Kembla LNG terminal is nearly 100 per cent complete, but is yet to sign long-term offtake agreements with potential customers.

The update on Viva Energy’s Geelong LNG proposal came as the ASX-listed company reported a 10 per cent lift in underlying half-year profit to $192 million, while overall fuel sales rose 6 per cent to 8.3 billion litres. Convenience store sales slipped over the period as consumers continued battling cost-of-living pressures.

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Barrenjoey analyst Dale Koenders said service station sales were expected to pick up in the second half, but oil refining margins – the spread between the price of refined fuels and the cost of crude oil inputs – remained weak due to recessionary fears, and were likely to weigh on the refinery’s outlook.

After sealing a deal to buy the OTR petrol station chain from the Adelaide-based Peregrine Corporation, Viva is in the process of converting its Reddy Express stores to successful OTR retail offerings, which include quick-serve restaurants and groceries, and are expected to become increasingly important as drivers spend longer periods waiting for their electric vehicles to charge.

Excluding South Australia, each OTR store is generating on average $2.5 million in convenience sales a year, compared to $1.6 million at Express stores, the company said.

UBS analyst Tom Allen described Viva Energy’s half-year result as solid, with the interim dividend at the top end of its policy, and the rollout of OTR sites progressing well.

Viva’s shares were expected to trade positively on the “better-than-expected” integration update and growth outlook, Allen said, and ended the day trading 0.7 per cent higher.

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