A South Korean company has joined the jostle to provide the country with gas import capability proposing a $500 million facility at the Port of Newcastle.

EPIK Co. Ltd, a liquefied natural gas floating storage and regasification unit company, on Wednesday announced the commencement of preliminary works after securing an agreement with the port.

An example of a floating LNG terminal in Japan. Credit:Cole Latimer

The project, named Newcastle LNG, will be situated at the back-end of the existing gas transmission network within the port.

According to EPIK the potential investment for the Newcastle project would be valued at between $US400 million ($A547 million) $US430 million.