AGL prepares to build Newcastle Gas Storage Facility pipeline from Hexham to Tomago

AGL Energy Limited (AGL) plans to commence construction of a natural gas transportation pipeline from Jemena’s gas distribution network in Hexham to AGL’s Newcastle Gas Storage Facility (NGSF) at Tomago, following receipt of its Pipeline Licence.

The licence was granted by the New South Wales Minister for Energy, the Hon Chris Hartcher. Construction of the pipeline will start in November 2013 and is scheduled to be completed by mid 2014.

Lucas Engineering & Construction Pty Ltd has been appointed to build the 5.5 kilometre long pipeline using best practice engineering techniques to minimise potential environmental and stakeholder impacts.

AGL's Construction Project Manager, Tim Knill, said that when complete the pipeline will allow natural gas to be supplied to the facility and stored for use during times of peak gas demand.

"AGL is delighted to see the scheduled commencement of the pipeline confirmed for November, as it is another milestone towards the delivery of this critical infrastructure project.

"This facility is set to enhance security of gas supply to homes and businesses in the greater Newcastle region."

Construction for AGLs $310 million NGSF commenced in August 2012 and is scheduled for completion by mid 2015. The facility includes a Liquefied Natural Gas (LNG) processing facility, an LNG storage tank, an LNG truck loading facility, a gas receiving station and ancillary infrastructure.

An estimated 300 local jobs will be created during construction and an ongoing permanent AGL workforce of 15 employees will operate the facility when it is complete.

About AGL

AGL is one of Australia's leading integrated renewable energy companies and is taking action toward creating a sustainable energy future for our investors, communities and customers. Drawing on 175 years of experience, AGL operates retail and merchant energy businesses, power generation assets and an upstream gas portfolio. AGL has one of Australia's largest retail energy and dual fuel customer bases. AGL has a diverse power generation portfolio including base, peaking and intermediate generation plants, spread across traditional thermal generation as well as renewable sources including hydro, wind, landfill gas and biomass. AGL is Australia's largest private owner and operator of renewable energy assets and is looking to further expand this position by exploring a suite of low emission and renewable energy generation development opportunities.