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Victoria’s LNG bonanza

The industrial gas company, BOC, will redevelop its Dandenong facility to provide additional LNG for the Victorian market. The main beneficiaries will be the emerging fleet fuelling market.

LNG is significantly cheaper than diesel for heavy haulage, however there has been very limited supply available constraining its use. The environment will also benefit, as LNG releases 20% less greenhouse gases compared with diesel powered trucks.

Alex Dronoff, General Manager LNG, BOC, said the redevelopment is part of the company’s long term commitment to LNG for the domestic market.

“We are currently the only company producing LNG for the domestic market in Victoria and the redevelopment is an important part of our $150 million investment plan into the LNG market on the east coast.”

BOC became the first company in Australia to produce LNG when it established the Dandenong facility almost 30 years ago. Since then it has been producing LNG primarily to back up the Victorian gas grid through its association with the LNG storage facility owned and operated by the APA Group.

“For years we have been using a large portion of the LNG produced to liquefy our gaseous nitrogen which is sold into the industrial market. Now we are installing a new nitrogen liquefier and upgrading our LNG plant. This will enable us to release the LNG direct into the market and, increase our supply of LNG from 50 tpd to 150 tpd.”

BOC said the new plant will be on line in August 2009.

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