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.

The facility effectively provides customers with an insurance hedge against market risk.

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

  • Hedge their gas supply book.
  • 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.
  • Increase protection in a tightening gas market, resulting from start-up of Gladstone export LNG plants.
  • Operate gas fired peak power stations to take advantage of peak electricity prices, and to continue operating when pipeline storage has been depleted.


Dandenong LNG Gas Storage Facility offers a combined ‘firm’ and ‘as available’ injection service to the Eastern Australian gas market.

APA also sells LNG for remote applications and heavy road transport as an alternative to diesel and LPG. The facility has an LNG tanker loading capacity of around 100 tonnes of LNG per day.

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