A proposal for a 300-meter-long floating gas terminal off the Mornington Peninsula was rejected by the Victorian government.
Planning Minister Richard Wynne said the Crib Point terminal would have had unacceptable environmental effects in the West Harbor.
The terminal reportedly dumped up to 180 Olympic-size chlorinated water pools into the Western Harbor every day.
“This is a comprehensive, open and transparent process and it is the right outcome for the local community, the environment and Victoria as a whole,” said Wynne.
“It is very clear to me that this project would have unacceptable impacts on the environment of the western port and the Ramsar wetlands – it is important that these areas are protected.”
The plant would have been adjacent to an internationally renowned wetland and 12 kilometers from the nearest marine park.
It was to be connected to Victoria’s gas network via a new 55-kilometer pipeline between Crib Point and Pakenham, which would have passed through wetlands, farmland and private property.
The developer, AGL, argued this was necessary due to an impending gas shortage in Victoria as gas reserves in Bass Strait are depleted. AGL said it would also keep prices low for East Coast gas consumers.
However, locals argued that it would impact the local environment, destroy tourism businesses, cause damage to marine life, and increase greenhouse gas emissions.
In a statement, AGL said it is reviewing and considering its position on the determination.
The company said it has spent around $ 130 million on the project to date.