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
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 and Lochard Energy has now completed the drilling phase of the Project.
Construction for the HUGS Pipeline is currently underway with the completion expected by Q2, 2026.
This new pipeline will extend Iona Gas Storage Facility’s existing network, enabling the transport of gas to and from the newly developed wellsite.
The timeline for construction is subject to weather conditions, as well as landholder agreements and regulatory approvals.

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 is under construction. This 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.

