The Project
Newcastle Gas Storage Facility Project
Overview
AGL Energy Limited (AGL) proposes to develop the Newcastle Gas Storage Facility Project (the Project) at Tomago, New South Wales (NSW). The Project is required to meet AGL's peak gas market requirements over winter and to provide additional security of gas supply during supply disruption events. Currently, NSW does not have any similar gas storage capacity.
Specifically, AGL seeks to develop:
The gas plant site
Which includes:
- A processing plant that will convert pipeline natural gas to liquefied natural gas (LNG) by cooling it to -162°C. It will be capable of processing up to 66,500 t of LNG per year
- An insulated, non-pressurised LNG storage tank capable of containing 30,000 t or 63,000 m³ of LNG, equivalent to 1.5 petajoules (PJ) of natural gas, and an associated containment area
- A re-gasification unit to convert the LNG in the storage tank back into natural gas
- A flare stack with a height of approximately 15m to combust hydrocarbons discharged from the process
- A truck loading facility to allow the dispatch of up to 1,000 tankers of LNG per year
- Infrastructure and utility connections
- An emergency access road
A natural gas pipeline
A 5.5 km long pipeline will connect the gas storage facility to the receiving station at Hexham.
A natural gas receiving station
Located at Hexham to link the Project into the NSW gas network via the existing Wilton-Newcastle trunk pipeline.
The estimated capital cost of the Project is $300 million.
Background
An essential energy source, natural gas is supplied to more than a million industrial and commercial gas users in NSW, such as hospitals, schools, businesses and residential customers.
The Project will develop critical energy infrastructure that:
- Provides greater security of gas supply
- Creates additional capacity to supply the growing demand for gas in NSW
- Generates economic benefits for the state during the construction, commissioning and operational phases
- Supports the emerging CSG industry in the Hunter and Gloucester regions
The New South Wales Planning Assessment Commission (PAC) has approved AGL's application to construct the Newcastle Gas Storage Facility at Tomago, near Newcastle.
The state government granted its approval on 10 May 2012 under Section 75J of the Environmental Planning & Assessment Act 1979 and subject to certain conditions. This provides AGL with state government permission to construct the gas plant, pipeline, receiving station and associated and ancillary infrastructure. More information on the PAC approval including the consent conditions are available on the PAC website.
For AGL's full announcement regarding state government approval, please read the media release available on the AGL website.
In July, AGL received Commonwealth Government approval to commence construction of the project. CBI Constructors Pty Ltd (CBI) has been awarded the contract to engineer, procure and construct the project which is expected to commence in late August.
The conditions of consent, the EA Report and the Preferred Project and Response to Submissions Report are available on the DP&I's website.
For AGL's full announcement regarding the Commonwealth's approval, please read the media release available on the AGL website.
The project was previously identified by the New South Wales state government as a Major Project under Part 3A of the Environmental Planning and Assessment Act (1979) in August 2010.
AGL expects have the facility in operation by winter 2015.
The Project fact sheet can be viewed on the FAQ and factsheets page.
