Less than two months after its official opening, AGL Energy Limited’s (AGL) $310-million dollar Newcastle Gas Storage Facility (NGSF) at Tomago in New South Wales, has shipped its first consignment of liquefied natural gas (LNG).

The shipment, 17 tonnes of LNG, has been supplied to a commercial processing facility in the Hunter region.

The NGSF 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 NGSF.

“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,” Mr. 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,” he said.

“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. This makes AGL’s NGSF the largest LNG facility in Australia servicing the domestic market,” Mr. Jackson said.

The LNG is stored and vapourised at the customer’s premises, the pressure is regulated and its usage metered.

AGL offers a ‘turnkey’ service and converts burners, boilers, and other gas appliances on customer sites and will assist customers meeting codes and compliance and certification requirements.

About AGL

AGL is one of Australia’s leading integrated renewable energy companies and is taking action to gradually reduce its greenhouse gas emissions while providing secure and affordable energy to its customers. Drawing on over 175 years of experience, AGL serves its customers throughout eastern Australia with their energy requirements, including gas, electricity, solar PV and related products and services. 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, solar, landfill gas and biomass.