The ABC has reported that the NSW state government has granted approval to AGL to construct a 4.5 kilometre low pressure LNG pipeline between its storage facility near Newcastle and an adjoining aluminium smelter.
The Newcastle Gas Storage Facility at Tomago, constructed at a cost of $310 million, is expected to start operating in 2015 and will store approximately 30,000 tonnes of LNG.
AGL says the Newcastle Gas Storage Project is required to meet AGL’s peak gas market requirements over winter and to provide additional security of gas supply during supply disruption events. Currently, NSW does not have any similar gas storage capacity.
