Australian Gas Infrastructure Group (AGIG) is considering an initial $200 million investment to help commercialise the closest gas field to Victoria’s eastern coastline.
The investment would deliver greater gas energy security to the East Coast gas market, enhance supply volumes and deliver Victoria a critical gas storage facility to underpin the state’s push to renewable energy.
The move is a partnership between the Australian Gas Infrastructure Group (AGIG) and GB Energy Holdings Limited (GB Energy), the ultimate owner and developer of the Golden Beach gas field.
AGIG and GB Energy announced today they have entered a non-binding but exclusive Transaction Process Deed, which sets out the process for negotiating and executing documentation for AGIG’s proposal to fund, build and operate the midstream infrastructure for the Golden Beach Gas Project.
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This would cover all the plant, property, equipment and activities required for the transmission and processing of gas to and from the field. This work has an estimated development cost of approximately $200 million.
Gas from the Golden Beach gas field could be delivered as early as 2022 to the Longford Gas Hub and its associated strategic pipeline infrastructure, approximately 20km away in East Gippsland.
The parties are also working towards AGIG’s involvement in the estimated A$145 million development of the Golden Beach Gas Project’s upstream infrastructure. This covers all plant, property, equipment and activities related to drilling and producing gas from the Golden Beach gas field.
AGIG already operates one of Australia’s largest gas storage facilities, the Tubridgi gas storage plant in the onshore Pilbara region of WA.
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AGIG’s chief executive Ben Wilson said, “As renewable energy penetration increases, gas demand will become more variable as gas fulfills a crucial firming role. This increases the need for storage.
“AGIG’s experience in delivering WA its largest gas storage facility will be very helpful for the project. Golden Beach’s stored gas will help guarantee future gas supply to customers to meet the domestic market.
“After an extensive period of due diligence, the parties are highly confident of moving the proposals to full commercial outcomes.”
GB Energy CEO Tim Baldwin said, “AGIG brings a deep understanding of infrastructure projects as well as very recent experience in the delivery of gas storage. A long-term collaboration with AGIG will complement the GB Energy team and when coupled with the Origin Energy contracts announced in 2019, ideally positions the Golden Beach Gas Project for the future.
“The project will provide Victoria with new domestic gas supply in the short-term. The overall investment in critical energy storage infrastructure will then provide a range of ongoing benefits to an evolving East Coast market.
“We welcome AGIG’s interest in GB Energy alongside its focus on infrastructure, and see this as a platform for an ongoing successful partnership.”