Australia's New South Wales State Government passed a request for USD175 million to be granted to the east coast for a Liquefied Natural Gas (LNG) terminal in Port Kembla.
If they decide to go ahead with the project in the middle of this year, first gas could be delivered by late 2020, the partners said in a joint in a joint release.
"We look forward to providing the best solutions to secure stable and competitive gas supply for the businesses and people of NSW by utilising our own expertise as one of the world's largest LNG players", JERA's head of upstream resources, Gaku Takagi, said in a statement.
The NSW Government has given planning approval for Australian Industrial Energy to construct the gas terminal at Port Kembla.
In June 2018, the NSW Government declared the PKGT proposal Critical State Significant Infrastructure (CSSI) because of its importance to NSW's future security and reliability of gas supply.
With the creation of 150 jobs during construction and up to 50 ongoing roles once operational, the terminal is also a major boost for the economy.
Plans for a A$250 million (US$176 million) gas import terminal have been approved by the NSW government at Port Kembla near Wollongong to help the state avoid future shortages.
The development consent announcement makes Port Kembla LNG the first of the five projects to receive a green light from the government.
"It could support gas-fired electricity generation in NSW and help make sure we have reliable electricity even when the sun isn't shining and the wind isn't blowing", Mr Kean said.
NSW Minister for Planning, Rob Stokes, said NSW now relies on interstate sources for 95 per cent of its gas supply and this important project will help achieve energy security into the future.
The power station, to be located in the Illawarra, would be fuelled by gas from the PKGT.
"The project will enhance gas supply capacity - relieving gas price pressure for families and businesses across the state".
The AIE partners want sales to match the LNG volume that JERA, a joint venture between Tokyo Electric Power and Chubu Electric Power, has agreed to supply.
Earlier in the year, AIE said discussions for gas supply agreements are taking place with 22 potential customers.