Storage facility improves security of gas supply for NSW customers

AGL Energy has opened the $310 million Newcastle Gas Storage Facility (NGSF), which will improve security of supply for hundreds of thousands of gas users in New South Wales.

AGL managing director and chief executive officer Andy Vesey and NSW Parliamentary Secretary for the Hunter and Central Coast Scot MacDonald, on behalf of Minister for Industry, Resources and Energy Anthony Roberts, were on site at Tomago to open the facility, which has been under construction since August 2012.

Mr Vesey said the significant project for AGL was delivered on time and on budget.

“It’s a vital asset for the Hunter region and will be used to support gas supplies during times of peak winter demand and if there is a major disruption to NSW gas supplies,” he said.

“The project team has done an impressive job of delivering, in less than three years, the large storage tank and all the necessary gas processing equipment, gas supply pipelines and electrical connection infrastructure.”

The imposing 40m high tank has the capacity to hold 30,000 tonnes – or 1.5 petajoules – of liquefied natural gas (LNG).

“The cost of one day’s interruption to the region’s gas supply is estimated to be $5.5 million. The tank provides storage capability for up to two weeks of gas demand providing much needed energy security, particularly to manufacturers,” Mr Vesey said.

The NGSF project has been a major economic contribution to the Hunter region, employing more than 300 people during the construction peak in September last year. The construction contributed an estimated $144 million, directly and indirectly, to the regional economy between 2012 and 2015.

“AGL supplies natural gas to 700,000 gas users in NSW, including hospitals, schools, businesses and homes,” Mr Vesey added.