Victoria’s mining and resources regulator, Earth Resources Regulation, has given approval to work underway at Lochard Energy’s Iona Plant near Port Campbell to create more underground gas storage.
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Lochard Energy is drilling a new gas storage well in the plant area that will use underground sands to store gas under pressure.
Earth Resources Regulation officers will continue to monitor the activities at the gas plant to ensure compliance with strict controls.
The works are authorised under Lochard Energy’s existing licence, which are not subject to Victoria’s moratorium on drilling for conventional onshore gas, because it does not involve the extraction of new gas.
On Victoria’s coldest days, demand for gas outstrips the amount being processed and storage reservoirs such as the one being developed at the Iona plant are drawn upon. The Iona Plant supplies about 30 per cent of Victoria’s peak winter gas demand.
Gas to be stored in the new underground storage well will come from offshore fields near Port Campbell as well as from other East Australian gas fields such as the Gippsland Basin.
