One of Australia’s leading energy companies has secured the long-term gas rights utilising the Iona Gas Storage Facility.
AGL Energy Limited (AGL) has entered into a 15-year Gas Storage Services Agreement (GSSA) for the provision of gas storage services from the Iona Gas Storage Facility.
The facility will be owned and operated by a consortium managed by QIC on behalf of its managed clients and funds.
The GSSA provides the ability for AGL to optimise its gas supplies by storing gas during low demand periods for re-use during peak demand periods, directly supplying both Victoria and South Australia and indirectly, through AGL’s contract portfolio, NSW.
From January 2021 the Iona contract provides AGL with sufficient swing capacity to manage its forecast retail winter gas demand requirements across NSW, ACT, Victoria and South Australia when AGL takes approximately half of the current capacity of the facility.
The GSSA will result in a more than 30 per cent reduction in AGL’s costs to manage seasonal demand when compared to AGL’s equivalent contracted costs prior to the commencement of this increased contracted capacity in 2021.
These gas storage services coupled with AGL’s contracted supply arrangements, make AGL well placed to meet peak demand requirements for its 1.5million residential gas customers well into the next decade.
AGL will also be able to serve the peaking demand requirements of changing energy market needs in Victoria, South Australia, NSW and ACT.