A $250 million gas import terminal in New South Wales has been given the green light.

The NSW Government has announced the approval for a new berth at Port Kembla, south of Sydney, to house a floating liquid natural gas (LNG) handling facility.

The project was put forth by a consortium backed by billionaire Andrew Forrest and Japanese energy giants.

The development will be subject to conditions designed to minimise impacts of dredging in the harbour and regulate air and water discharges during construction.

“We've heard from manufacturers about the cost of energy, especially around gas,” NSW Deputy Premier John Barilaro said.

“What this will do is stimulate the economy [and] keep those jobs in Australia … in my mind it means a boost to our manufacturers.”

Proponents says the gas terminal will create 150 construction and 50 ongoing jobs, and the Illawarra Business Chamber claims it will secure 15,000 jobs in gas-dependent businesses across the region.

Regional Development Australia Illawarra says it will reduce costs for energy-intensive industries, and has highlighted the potential for a gas-fired power station nearby.