APA’s Dandenong LNG Gas Storage Facility provides gas buyers, including gas retailers, flexibility in the East Australian gas market, by providing options to manage gas supply and demand during production outages or emergencies and peak demand periods.

Strategically 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.

Services

Dandenong LNG Facility offers capacity options to address gas supply portfolio needs and match customers’ varying risk appetites. The services aim to assist customers in managing their exposure to market events.

Service Description Nameplate Capacity
Firm Vapourisation

This base service is designed to support customers in managing their portfolio risk in the DWGM. Firm daily vapourisation capacity gives customers the certainty of the volume of LNG they can inject into the DWGM. Each unit of Firm Vapourisation is accompanied by 3 units of LNG storage. 131,760 GJ/day

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 vapourise up to 4,500 GJ/hour and provide gas for supply security in the Victorian system. 105,240 GJ/day

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. 210,000 GJ

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. 2,740 GJ/day pro rata across all customers

Commercial Enquiries

Please visit APA's Commercial Enquiries page.

How the Dandenong LNG Gas Storage Facility works

Natural gas is taken from the Longford Dandenong Pipeline, cleaned to remove moisture and carbon dioxide, and then cooled to -163° Celsius. At this temperature it becomes a liquid which is then stored in the very large onsite above-ground LNG tank.

The tank can hold 680 terajoules of LNG (approximately 12,400 tonnes) and can be topped up at a rate of up to 8.2 terajoules per day.

To supply gas into the East Coast gas market, the LNG is warmed to be turned back into natural gas. The combined injection capacity of the plant is 237 terajoules per day (9.8 terajoules per hour). This is equivalent to the average daily gas consumption of 1.5 million households. The plant can be injecting into the market at full capacity within an hour of start-up.

The facility’s onsite control centre is manned 24 hours per day.

Fast Facts

Storage Capacity 680 terajoules
Injection Capacity 237 terajoules per day
Storage Top-Up Capacity 8.2 terajoules per day
LNG Tanker Loading Capacity 100 tonnes per day
Inlet Point Longford to Dandenong Pipeline
Outlet Points Melbourne Inner Ring Main