Heytesbury Underground Gas Storage Project
The HUGS Project will expand the storage capacity of the Iona Gas Storage Facility
Supporting the Australian Energy Market
Lochard Energy is developing the Heytesbury Underground Gas Storage (HUGS) Project, which will expand the storage capacity of the Iona Gas Storage Facility.
As Australia’s energy market transitions away from coal-fired power generation to renewable energy, energy storage capacity of different technology types is needed to ensure a consistent and reliable supply. 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 involve the development of a new wellsite and construction of an underground pipeline (the HUGS Pipeline). The HUGS Pipeline is required to transport gas between the proposed new wellsite and the Iona Gas Storage Facility.
The HUGS project will provide additional security of supply and reliability to the eastern Australian Energy Market
Project Update – Drilling
Lochard Energy are continuing to develop the HUGS Project for expansion of our Iona Gas Storage Facility. The HUGS Project will store gas underground in depleted gas fields.
Construction of the new wellsite for gas storage commenced in December 2024. Lochard Energy are now ready to commence the drilling phase of the Project. The drill-rig will be mobilizing to site in late April – early May 2025. You may see large truck and equipment on local roads as we move the drill-rig into the wellsite.
The drill-rig will be similar to the one pictured below.
Work Schedule
Drilling works are anticipated to take approximately 100 days in total. Rig Operations are planned to run for approximately 70 of those days, which will require 24 hours per day, 7 days per week operations.
Traffic Management & Impact
Dust suppression measures will be in place across the work front, and traffic control and management will be implemented as needed. To assist with local traffic flow, the Project team will be under travel restrictions in the area as required. Project vehicles will not travel on roads within a 15 km radius of the HUGS wellsite during school bus travel hours, from 07:30 to 09:00 am and 3:30 to 5:00pm, Monday to Friday. These curfews are designed to help ensure safety during peak traffic times for local families and students.
Noise
Drilling works are expected to introduce a level of additional noise to the surrounding environment, sourced mainly from the drilling rig and other plant and equipment used for drilling activities. This is expected to occur during both day and night hours for a portion of the overall Drilling works timeframe. It is expected there will be a small amount of flaring of gas which is required as part drilling to assist with reservoir evaluation and during the well clean-up phase prior to construction operations commencing.
Please contact Lochard Energy on the details below if you have any queries regarding Noise or disturbance from the Drilling operation.
Accomodation – Temporary Camp
To support drilling operations and minimise disturbance to community a temporary accommodation camp will be established on Boundary Road, using the existing site of the former Tregony wellsite which has been decommissioned by Lochard Energy. See map for location of all relevant sites.
Contact Information
If you have any questions or concerns regarding the construction works or the impact on local roads and services, please do not hesitate to reach out to contact Lochard Energy on 1800 848 879 or by email to [email protected].
For immediate or emergency issues please contact the Site Representatives on:
Mobile: 0497 415 964 or Mobile: 0497 270 286
Pipeline Route
The preferred route for the HUGS Pipeline has been selected and will be a 5.3km 300mm diameter underground pipeline that will connect into Iona’s existing pipeline network.
Project Fact Sheets
To view and download our fact sheets on HUGS, simply click on the links below.
Pipeline Licence Application
Construction of the HUGS Pipeline requires a Pipeline Licence granted by the the Victorian Department of Energy, Environment and Climate Action (DEECA).
Lochard Energy have lodged an application for pipeline licence and the application documents are available to download below.
If you would like to submit a query regarding the pipeline application for the HUGS Project, please visit the Engage Victoria website.
- Lochard Energy HUGS Pipeline Application
- Att A Part 1 – Overview Map
- Att A Part 2 – Pipeline Commencement & Termination
- Att B – Map Book
- Att C – EES Self-Assessment
- Att D – Biodiversity Assessment
- Att E – Native Vegetation Offset Assessment
- Att F – Greenhouse Gas Assessment Report
- Att G Part 1 – Noise Impact Assessment
- Att G Part 2 – Noise Contours
- Att H – Climate Change Act Assessment
- Att I – Pipeline Traffic Management Plan
- Att J Part 1 – Pipeline Environment Management Plan
- Att J Part 2 – Environmental Line List
- Att J Part 3 – Environmental & Social Impact Assessment
- Att K Part 1 – CHMP 18865
- Att K Part 2 – CHMP proposed amended activity area
- Att L – Native Title Analysis
- Att M – Route Selection Report
- Att N – Basis of Design
- Att O – Constructability Assessment
- Att P – Safety Management Study Report
- Att Q – Pipeline Safety Management Plan
Pipeline Consultation Plan
In accordance with the regulator, Lochard Energy has developed a Pipeline Consultation Plan, which demonstrates how we will consult with landowners and occupiers about the proposed pipeline and meet the consultation requirements laid out in the legislation and regulations. The HUGS Pipeline Consultation Plan has been approved by the Department of Environment, Land, Water and Planning and can be accessed via the button below.
