Australian gas and electricity company AGL Energy is planning to spend A$300 million ($296.6 million) on a small-scale LNG and gas storage project in the east coast city of Newcastle, according to plans for the project lodged with the federal environment department last week.
The project would include a refrigeration plant to cool natural gas into LNG, an LNG storage tank, and regasification units to convert LNG back into pipeline quality gas, according to the plans submitted by AGL to the Department of Sustainability, Environment, Water, Population and Communities. The project also requires a new gas pipeline connecting it to the existing network at Hexham near Newcastle.
The refrigeration plant would be able to liquefy around 10 terajoules/day (8 mt/hour) of natural gas and is expected to operate for around nine months in any given year, producing 130,000 mt/year of LNG. The above-ground gas storage tank would have a capacity of about 1.5 petajoules (30,000 mt or 63,000 cubic meters) of LNG, AGL said in its submission.
The regasification plant would be able to regasify around 120 Tj/d (2,185 mt/d) of LNG.
AGL is aiming to complete the project in 2014. To meet the target, construction would need to start by mid-2011, according to material on the company's website.
The facility would have the capacity to store about two weeks' supply of gas for the Greater Newcastle region, in the state of New South Wales, and will play a critical role in ensuring security of supply during periods of peak demand or disruptions, AGL said. Australia already has a similar facility located in Dandenong in the southeastern state of Victoria, which provides strategic gas reserves for the city of Melbourne.
The LNG stored at the Newcastle facility would be regasified and re-injected into the New South Wales gas distribution network for supply into the Newcastle, Central Coast and Greater Hunter region markets, AGL said. The LNG could also be transferred by road tanker for use as an alternative fuel for heavy duty transport vehicles or remote power generation.
Up to around 80% of the gas leaving the site would be transferred to the state pipeline network for sale. About 20% of the gas could be shipped as LNG in road tankers, each carrying around 18 mt.
The Newcastle region currently receives its gas via existing pipelines between the state capital Sydney and Hexham.
Local coalseam gas producer Eastern Star Gas has also proposed plans to build an LNG facility in Newcastle, but that plant would produce 1 million mt/year in its initial phase and is designed to serve export markets.
The project would include a refrigeration plant to cool natural gas into LNG, an LNG storage tank, and regasification units to convert LNG back into pipeline quality gas, according to the plans submitted by AGL to the Department of Sustainability, Environment, Water, Population and Communities. The project also requires a new gas pipeline connecting it to the existing network at Hexham near Newcastle.
The refrigeration plant would be able to liquefy around 10 terajoules/day (8 mt/hour) of natural gas and is expected to operate for around nine months in any given year, producing 130,000 mt/year of LNG. The above-ground gas storage tank would have a capacity of about 1.5 petajoules (30,000 mt or 63,000 cubic meters) of LNG, AGL said in its submission.
The regasification plant would be able to regasify around 120 Tj/d (2,185 mt/d) of LNG.
AGL is aiming to complete the project in 2014. To meet the target, construction would need to start by mid-2011, according to material on the company's website.
The facility would have the capacity to store about two weeks' supply of gas for the Greater Newcastle region, in the state of New South Wales, and will play a critical role in ensuring security of supply during periods of peak demand or disruptions, AGL said. Australia already has a similar facility located in Dandenong in the southeastern state of Victoria, which provides strategic gas reserves for the city of Melbourne.
The LNG stored at the Newcastle facility would be regasified and re-injected into the New South Wales gas distribution network for supply into the Newcastle, Central Coast and Greater Hunter region markets, AGL said. The LNG could also be transferred by road tanker for use as an alternative fuel for heavy duty transport vehicles or remote power generation.
Up to around 80% of the gas leaving the site would be transferred to the state pipeline network for sale. About 20% of the gas could be shipped as LNG in road tankers, each carrying around 18 mt.
The Newcastle region currently receives its gas via existing pipelines between the state capital Sydney and Hexham.
Local coalseam gas producer Eastern Star Gas has also proposed plans to build an LNG facility in Newcastle, but that plant would produce 1 million mt/year in its initial phase and is designed to serve export markets.
