The Australian Financial Review reports that Lochard – along with AGL, Origin and other gas sellers – believes an expansion of the pipeline is “critical” to ensure supplies as well as supporting a planned expansion at Iona.
The view is also supported by the Australian Energy Market Operator (AEMO) who warned last month that there was a “threat to system security” as a bottleneck in the pipeline would prevent the plant being refilled in time for winter 2018.
The 500 mm diameter, 144 km South West Pipeline (also known as the Iona to Lara Pipeline) delivers gas from the Iona Gas Plant to Melbourne, and was commissioned in 2000.
The Iona Gas Plant supplies the Victorian market via the South West Pipeline and the South Australian market via the 707 km, 350–450 mm South East Australia Gas (SEA Gas) Pipeline.
Located adjacent to the Otway Gas Plant, Iona is connected to the nearby Minerva Gas Plant via the SEA Gas Pipeline.
The plant includes two gas processing trains and compression equipment to process gas from the storage reservoirs and the offshore Casino development.
