10 March 2004
GasNet and Wesfarmers Kleenheat Gas to supply LNG to the heavy-duty vehicle market
GasNet today announced that it had signed an agreement with Kleenheat Gas for GasNet to design, procure, construct, commission and operate a Liquefied Natural Gas (“LNG”) Truck Loading Facility at GasNet’s 12,000 tonne LNG storage facility in Melbourne. The facility in it’s initial stage will have the capacity to supply the total fuel requirement of in excess of 200 heavy duty vehicles. Kleenheat Gas has also secured a long term gas supply agreement with AGL.
Kleenheat Gas is a major distributor of gaseous fuels in Australia and has been operating for over 50 years. For the last 3 years Kleenheat Gas has successfully operated an LNG plant and associated infrastructure in Western Australia, providing LNG to the heavy-duty vehicle industry.
LNG is a commercially viable and environmentally friendly alternative to diesel and CNG. LNG provides a significant reduction in greenhouse gases, engine emissions and a decrease in noise levels. The stable supply price of LNG is also a major advantage for transport operators because, unlike diesel, pricing is not linked to the international oil price.
Gary Ireson, Kleenheat Gas General Manager commented, “LNG is an innovative fuel for companies throughout Australia and I’m pleased that Kleenheat is now in a position to offer this quality product outside Western Australia. It has the potential to become the fuel of choice for the heavy transport industry such as semi trailers, transit buses and garbage trucks.
Kleenheat has a long term supply contract with a major Victorian fleet operator of line haul B double vehicles. This foundation customer has in excess of 100 vehicles that will consume LNG in Euro IV certified engines.
In addition, LNG can be used to provide natural gas for stranded gas reticulation systems and power generation in remote areas throughout Australia” said Mr Ireson.
Chief Executive Officer of GasNet, Ms Christine O’Reilly said: “this agreement is the result of nearly two years of discussions and is an exciting opportunity for both GasNet and Kleenheat Gas to capitalise on their core skills to develop an LNG market on the Australian east coast”.
GasNet is a regulated gas transmission provider with assets situated predominantly in Victoria as well as connecting with NSW. Almost all the natural gas consumed in Victoria is transported through GasNet’s 1,930 km high-pressure gas transmission pipeline network.
Media Release 10 March 2004