AGL Energy has shipped first gas from the $310 million Newcastle Gas Storage Facility at Tomago.
The shipment of 17 tonnes of LNG comes just two months after the facility’s official opening.
The Newcastle Gas Storage Facility is Australia’s largest LNG facility servicing the domestic market. LNG is produced by purifying and cooling natural gas to -161°C, the point where methane condenses to a liquid form. It is then pumped into the 63, 000 cubic metre insulated storage tank.
AGL’s Executive General Manager, Group Operations, Doug Jackson said initially there would be two to three LNG deliveries a week from the facility.
“Not only does the NGSF ensure gas supply security for peak usage periods or supply disruptions, but we can help meet the growing commercial LNG needs of Australian industry as it seeks lower carbon-emitting fuels in a cost-effective manner,” Jackson said.
“The use of LNG may offer significant cost savings over LPG or diesel, it produces 10-15 per cent less CO2 than LPG, and with significantly lower particulate emissions than coal or diesel, it represents an eco-friendly and cost efficient fuel alternative for regional Australian businesses that are located off the gas network.”
The processing plant that converts pipeline natural gas to LNG is capable of processing up to 66,500 tonnes of LNG per year and storing 30,000 tonnes throughout the year.
The LNG is stored and vapourised at the customer’s premises, the pressure is regulated and its usage metered.