BOC set to expand east coast LNG refuelling network

Release Date: 2010-05-11

BOC is set to undertake a $65 million upgrade of its 30-year-old LNG plant in Dandenong, Victoria, as part of the establishment of a $200 million network of LNG fuel stations for heavy vehicles along Australia’s east coast.

The upgrade includes the expansion and refurbishment of the plant’s air separation unit and LNG facilities and is due to be completed in mid-2012.

APA Group will provide loading and storage facilities for LNG from the plant under a 17-year extension of an existing agreement.

BOC Managing Direct South Pacific Colin Isaac said “To fuel the heavy vehicles along the east coast of Australia, BOC will be using the fuel processed from its micro-LNG plant in Chinchilla, Queensland, as well as using LNG from the newly refurbished facility in Dandenong.

“This plant has been reliably producing LNG for over 30 years to back up the Victorian gas grid in its association with the LNG storage facility owned and operated by APA.

“The expanded plant will produce up to 100 tonnes per day (t/d) of LNG to be supplied to APA for use in the LNG merchant market. BOC has subsequently contracted with APA for up to 50 t/d of the plant capacity for use in the heavy vehicle market. BOC will convert natural gas to LNG and APA will provide LNG storage and loading facilities for BOC and other market participants,” Mr Isaac said.

Federal Minister for Resources and Energy Martin Ferguson, who attended the official signing, said that he hoped to see further development of LNG as a fuel for heavy transport industry in Australia.

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