Heytesbury Underground Gas Storage Project

Our proposed HUGS Project will expand the storage capacity of the Iona Gas Storage Facility, providing additional security of supply and reliability to the growing energy demands of the eastern Australian energy market

Supporting the Australian Energy Market

Lochard Energy is proposing to develop the Heytesbury Underground Gas Storage (HUGS) Project, which will expand the storage capacity of the Iona Gas Storage Facility.

The forecasted retirement of coal-fired power stations will leave an energy supply and security void in the market. With the replacement renewable energy generation being weather dependent and their supply to the network being intermittent, there will be an increasing reliance on gas generation to maintain system reliability during sustained periods of low renewable production. This will most likely occur through the darker and cooler winter months. The development of new gas storage capacity will help ensure there is adequate winter gas for generation to support the transition away from coal.

The HUGS project will provide additional security of supply and reliability to the eastern Australian Energy Market.

Supporting the Australian Energy Market

Lochard Energy is proposing to develop the Heytesbury Underground Gas Storage (HUGS) Project, which will expand the storage capacity of the Iona Gas Storage Facility.

The forecasted retirement of coal-fired power stations will leave an energy supply and security void in the market. With the replacement renewable energy generation being weather dependent and their supply to the network being intermittent, there will be an increasing reliance on gas generation to maintain system reliability during sustained periods of low renewable production. This will most likely occur through the darker and cooler winter months. The development of new gas storage capacity will help ensure there is adequate winter gas for generation to support the transition away from coal.

The HUGS project will provide additional security of supply and reliability to the eastern Australian Energy Market.

Key Points

The HUGS Project is expected to add approximately 3 petajoules of gas storage - enough to supply 118,000 average households per year.

There will be construction of a new wellsite, known as 'MFCT' from which it will be possible to access all 3 of the Mylor, Fenton Creek and Tregony (MFCT) gas fields.

A pipeline extension to Lochard’s existing network is also required to connect MFCT to Iona.

THE PROPOSED HUGS PROJECT DOES NOT INVOLVE HYDRAULIC FRACTURING OR 'FRACKING' , A PRACTICE THAT IS BANNED IN VICTORIA

Key Points

The HUGS Project is expected to add approximately 3 petajoules of gas storage – enough to supply 118,000 average households per year.

There will be construction of a new wellsite, known as ‘MFCT’ from which it will be possible to access all 3 of the Mylor, Fenton Creek and Tregony (MFCT) gas fields.