Dandenong LNG Facility

 

Description

Dandenong LNG (DLNG) is an LNG storage facility with a capacity of 680 terajoules (approximately 12,400 tonnes) available for contracting. It provides gas buyers flexibility in the East Australian gas market through the ability to store gas and inject it into the Victorian Declared Wholesale Gas Market.

Located on the Melbourne Inner Ring Main, the facility is ideally situated to enable the rapid vaporisation of LNG and subsequent injection of natural gas into the pipeline system.

As Victoria’s only commercial gas storage facility located within a major demand centre, it provides customers with flexibility to:

  • Minimise customer curtailments due to gas supply outages or sudden demand increases, including gas fired power generation.
  •  Capture additional revenue by selling gas during times of high market prices.
  • Reduce supplier take or pay contractual requirements by utilising LNG from the Dandenong facility during peak demand.
  • Operate gas fired peak power stations to take advantage of peak electricity prices, and to continue operating when pipeline storage has been depleted.


A diagram of DLNG can be found here, showing:

  • Storage capacity
  • Injection capacity
  • Key connections to the facility
  • Technical and physical characteristics of the facility
APA Ownership

100%

Regulatory Status

DLNG is a non-scheme storage facility

Services

Firm Vapourisation

Contingency Vapourisation

Supplementary Storage

Liquefaction

 

Description

Firm Vapourisation - Firm daily vapourisation capacity gives customers a firm right, subject to the terms of the Gas Storage Agreement, to vapourise gas for injection into the DWGM in the event they are scheduled. Each unit of Firm Vapourisation is accompanied by 3 units of LNG storage. This base service is designed to support customers in managing their portfolio risk in the DWGM.

Contingency Vapourisation - This services gives customers access to additional vapourisation capacity above their Firm Vapourisation up to their available LNG holdings in the event of a threat to system security. In consultation with AEMO, APA can vaporise up to 4,500 GJ/hour and provide gas for supply security in the Victorian system.

Supplementary Storage - This service allows customers to purchase add-on storage to their existing Firm Vapourisation storage allowance. Supplementary Storage gives customers flexibility to vapourise up to their Firm Vapourisation allowance for further consecutive days without needing to refill their LNG holding in the Dandenong LNG Facility.

Liquefaction - APA provides a Liquefaction (or refill) service through BOC’s liquefaction plant located adjacent to the Dandenong LNG Facility. Liquefaction is typically scheduled the day after vapourisation and in accordance with liquefaction priorities under the LNG Services Agreements. This allows customers to replenish their LNG holding up to their maximum storage allowance.

 

Tariff

Firm Vapourisation - $229.3852/GJ

Contingency Vapourisation - $0.5734/GJ

Supplementary Storage - $34.4078/GJ

Liquefaction - $2.0164/GJ

Tariff Derivation

Firm Vapourisation - Tariff based on competitive alternatives for gas storage.

Contingency Vapourisation - Tariff based on competitive alternatives for gas storage.

Supplementary Storage - Tariff based on competitive alternatives for gas storage.

Liquefaction - BOC contract liquefaction rate + 5%

These services are offered subject to available capacity and the terms of the standard LNG Services Agreement.
All tariffs are current at 1 April 2024. More information on these tariffs can be found on the tariffs and terms page.

APA Financial Information Disclosure – Part 18A National Gas Rules

APA is reporting financial information for the Dandenong LNG storage facility under Part 18A of the National Gas Rules and the AER’s Pipeline Information Disclosure Guideline.

DLNG Actual Prices Payable information.

Policies, Procedures and Requirements

Gas Specification
Gas quality requirements for DLNG are set out in the Gas Quality Standard and Monitoring Guidelines and can be found here 

Credit Support
APA has minimum credit support requirements that are a pre-condition to gaining access to storage services. APA's credit support requirements are set out here.

LNG Services Agreement
here.

Contact

If you are interested in acquiring services for this facility, you can contact us on 02 9275 0020 to discuss your requirements. Alternatively, you may wish to make an enquiry by emailing us at [email protected].

We encourage potential customers to contact APA when considering the gas storage and vapourisation needs.