BOC Opens AUD65 Million LNG Plant Upgrade

| Australia, Dandenong Vic

BOC Ltd, a member of gases and engineering company The Linde Group, opened its AUD65 million (USD66 million) LNG project in Dandenong Victoria earlier this year, enhancing the security of low‐emissions fuel for the national heavy transport sector. More than 18 months in construction, the plant upgrade represents a vital link in BOC’s $200 million LNG highway being built along Australia’s eastern seaboard.

With a capacity to produce up to 100 tonnes of LNG per day, the project was a major expansion and refurbishment of BOC’s existing Air Separation Unit (ASU) and LNG facilities at the Dandenong site, to meet Australia’s growing LNG needs.

BOC Managing Director South Pacific, Colin Isaac, said the expansion of the plant where BOC became the first company to produce LNG in Australia 30 years ago, was a significant milestone for the company. BOC’s state‐of‐the‐art energy efficiency technologies would form a key element of Australia’s future energy mix and will be rolled out in other locations in a long‐term commitment to supporting the domestic gas industry and reducing greenhouse emissions., he added.

“It will form a crucial part in the LNG highway to fuel heavy road transport vehicles, utilising a network of refuelling stations on major routes,” Mr Isaac said. “Natural gas is an energy source of the future and the Dandenong plant will play a key role in the adoption of natural gas as a mainstream fuel source in Australia,’’ he 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 in Queensland as well as using LNG from this state‐of‐the art new facility in Dandenong,’’ he said.

The upgrade follows BOC’s February 2011 launch of Australia’s first Micro‐LNG plant in Westbury, Tasmania, and six refuelling stations across the island state for a combined $150 million.

“At Dandenong, we have been reliably producing LNG for over 30 years to back up the Victorian gas grid in association with the LNG storage facility owned and operated by APA Group,’’ he said.

The expanded plant will produce up to an additional 100 tonnes of LNG per day to be supplied to APA for use in the LNG merchant market. BOC has subsequently contracted with APA for up to 50 tonnes per day of the plant capacity, for use in the heavy vehicle market. Mr Isaac said LNG provided a more cost efficient and environmentally friendly fuel alternative for Australia’s heavy transport industry.

“LNG produces up to 20 per cent less greenhouse gas emissions when compared with diesel,” he said. “Unlike the price of diesel, which is linked to the highly volatile and unpredictable oil market, the price of LNG is more stable allowing for better control of business budgeting.’’

(This article compiled using information from a BOC Limited press release)

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