BOC opens $65 million LNG plant upgrade

Gas and engineering company BOC officially opened its $65 million LNG project in Dandenong, Victoria.

BOC, a member of The Linde Group, said the project greatly enhanced the security of low-emissions fuel for the 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.

BOC managing director South Pacific Colin Isaac said the expansion of the plant was a significant milestone for the company.

“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.

“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.

Mr Isaac said the Dandenong plant utilises similar technology to what the company will roll out in other locations in a long-term commitment to supporting the domestic gas industry and reducing greenhouse emissions.

It 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 LNG will 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.