BOC's MD South Pacific Colin Isaac (L) and Federal Minister Martin Ferguson, MP
BOC, a member of The Linde Group, has announced a $65 million expansion and refurbishment of its Air Separation Unit (ASU) and liquefied natural gas (LNG) facilities in Dandenong, Victoria in the next phase of its establishment of a $200 million network of LNG fuelling stations along the east coast of Australia. “This LNG highway will fuel heavy road transport vehicles, utilizing a network of refuelling stations on major routes. 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,” said BOC Managing Director South Pacific, Colin Isaac, to attendees at the press function which included federal Minister for Resources, Energy and Tourism, the Honourable Martin Ferguson, MP.
The expanded plant, which began producing LNG over 30 years ago as a backup for the Victorian gas grid, will produce up to 100 tonnes of LNG per day to be supplied to APA for use in the LNG merchant market. APA is Australia’s largest natural gas infrastructure business. BOC has subsequently contracted with APA for up to 50 tonnes per day 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.
“This agreement further cements our 30 year relationship with APA and extends our existing contract for another 17 years, underpinning the investment into this developing clean energy segment. APA will continue to provide LNG storage and peak shaving services to the Victorian wholesale gas market,” Mr Isaac said. BOC became the first company in Australia to produce LNG when it opened the Dandenong facility almost 30 years ago.
Isaac went on to extol the benefits of LNG: provision of a more cost efficient and environmentally friendly fuel alternative for Australia’s heavy transport industry; up to 20 per cent less greenhouse gas emissions when compared with diesel; and price stability allowing improved financial management – a significant advantage over diesel pricing which is driven by a volatile and unpredictable oil market.
APA Group Managing Director Michael McCormack said the company was delighted that BOC is expanding its LNG facility in Dandenong. “This agreement continues our long term relationship with BOC and consistent with the terms of this agreement, APA will provide LNG loading and storage facilities for BOC and other market participants,” he said.
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