AGL’s Newcastle Gas Storage Facility (NGSF) at Tomago in New South Wales has delivered its first consignment of liquefied natural gas (LNG).

The delivery of 17 tonnes of LNG has been supplied to a commercial processing facility in the Hunter region.

The NGSF is Australia’s largest LNG facility servicing the domestic market.

LNG is produced by purifying and cooling natural gas to -161°C, the point where methane condenses to a liquid form. It is then pumped into the 63,000 cubic metre insulated storage tank.

AGL’s Executive General Manager, Group Operations, Doug Jackson said initially there would be two to three LNG deliveries a week from the NGSF.

“Not only does the NGSF ensure gas supply security for peak usage periods or supply disruptions, but we can help meet the growing commercial LNG needs of Australian industry as it seeks lower carbon-emitting fuels in a cost-effective manner,” Mr. Jackson said.

“The use of LNG may offer significant cost savings over LPG or diesel, it produces 10-15 per cent less CO2 than LPG, and with significantly lower particulate emissions than coal or diesel, it represents an eco-friendly and cost efficient fuel alternative for regional Australian businesses that are located off the gas network,” he said.

“The processing plant that converts pipeline natural gas to LNG is capable of processing up to 66,500 tonnes of LNG per year and storing 30,000 tonnes throughout the year. This makes AGL’s NGSF the largest LNG facility in Australia servicing the domestic market,” Mr. Jackson said.

The LNG is stored and vapourised at the customer’s premises, the pressure is regulated and its usage metered.

AGL offers a turnkey service and converts burners, boilers, and other gas appliances on customer sites and will assist customers meeting codes and compliance and certification requirements.

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