AGL Energy, one of Australia’s leading integrated energy companies, recently announced that it has secured long-term gas storage rights utilising the Iona Gas Storage Facility located west of Melbourne.
The company yesterday confirmed that it has entered into a 15-yar Gas Storage Services Agreement (GSSA) for the provision of gas storage services from the Iona Gas Storage Facility, which a consortium led by infrastructure investor QIC acquired from Energy Australia for a purchase price of A$1.78 billion.
“The GSSA provides the ability for AGL to optimise its gas supplies by storing gas during low demand periods for re-use during peak demand periods, directly supplying both Victoria and South Australia, and indirectly, through AGL’s contract portfolio, NSW,” AGL said in a statement.
“From January 2021 the Iona contract provides AGL with sufficient swing capacity to manage its forecast retail winter gas demand requirements across NSW, ACT, Victoria and South Australia when AGL takes approximately half of the current capacity of the facility.”
AGL said the move will reduce its cost to manage seasonal demand by more than 30% when compared to its equivalent contracted costs prior to the commencement of this increased contracted capacity in 2021.
“These gas storage services coupled with AGL’s contracted supply agreements, make AGL well placed to meet peak demand requirements for its 1.5 million residential gas customers well into the next decade and to serve the peaking demand requirements of changing energy market needs in Victoria, South Australia, NSW and ACT,” reads AGL’s statement.