BOC’S $65m boost towards LNG network for east coast

BOC, a member of The Linde Group, announced the upgrade at a function at its Dandenong facility attended by federal Minister for Resources, Energy and Tourism, the Honourable Martin Ferguson, MP.
Due to be finalised in mid 2012, BOC’s existing Air Separation Unit (ASU) and LNG facilities will undergo a $65 million expansion and refurbishment.
BOC managing director South Pacific, Colin Isaac, said the expansion of the facilities will support the opening of an LNG highway to fuel the trucking industry along Australia’s eastern seaboard.
“This LNG highway will fuel heavy road transport vehicles, utilising a network of refueling stations on major routes,” 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 the newly refurbished facility in Dandenong.
“This plant has been reliably producing LNG for over 30 years to back up the Victorian gas grid in its association with the LNG storage facility owned and operated by APA Group.
“The expanded plant will produce up to 100 tonnes of LNG per day to 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.  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,” Isaac said.
He said LNG provided a more cost efficient and environmentally friendly fuel alternative for Australia’s heavy transport industry.
“LNG produces up to 20 per cent less greenhouse gas emissions when compared with diesel.
“Unlike the price of diesel, which is linked to the highly volatile and unpredictable oil market, the price of LNG is more stable and this allows for better control of business budgeting,” he said.
BOC became the first company in Australia to produce LNG when it opened the Dandenong facility almost 30 years ago.
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.
APA will also continue to provide LNG storage and peak shaving services to the Victorian wholesale gas market.