AGL Energy Limited (AGL) today officially opened the $310 million Newcastle Gas Storage Facility (NGSF) which will improve security of supply for hundreds of thousands of gas users in New South Wales.
AGL Managing Director & CEO Andy Vesey and NSW Parliamentary Secretary for the Hunter and Central Coast, the Hon. Scot MacDonald, on behalf of Minister for Industry, Resources and Energy, the Hon. Anthony Roberts, were on site at Tomago to open the facility which has been under construction since August 2012.
Mr Vesey said this significant project for AGL was delivered on time and on budget.
"It’s a vital asset for the Hunter region and will be used to support gas supplies during times of peak winter demand and if there is a major disruption to NSW gas supplies.
"The project team has done an impressive job of delivering, in less than three years, the large storage tank and all the necessary gas processing equipment, gas supply pipelines and electrical connection infrastructure," said Mr Vesey.
The imposing 40 metre high tank has the capacity to hold 30,000 tonnes – or 1.5 petajoules – of liquefied natural gas (LNG).
"The cost of one day’s interruption to the region’s gas supply is estimated to be $5.5 million. The tank provides storage capability for up to two weeks of gas demand providing much needed energy security, particularly to manufacturers.
"I’m also proud to note that the project did not record a single lost time injury during the 1.3 million hours worked."
The NGSF project made a major economic contribution to the Hunter region, employing more than 300 people during the construction peak in September last year.
The construction contributed an estimated $144 million, directly and indirectly, to the regional economy between 2012 and 2015.
"AGL supplies natural gas to 700,000 gas users in NSW, including hospitals, schools, businesses and homes," Mr Vesey added.
AGL is one of Australia's leading integrated energy companies and is the largest ASX listed owner, operator and developer of renewable energy generation in the country. Drawing on over 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 solar, hydro, wind, landfill gas and biomass. AGL is taking action toward creating a sustainable energy future for investors, communities and customers.