Investment in LNG infrastructure

The recent announcements by Shell and Caltex of plans to close their Sydney refineries has emphasised Australia’s growing dependence upon imported fuels and the volatility of global oil prices.

Kleenheat Gas – a division of Westfarmers – has therefore invested in a $137 million Liquified Natural Gas (LNG) plant in Kwinana, WA, and this week announced that it has received a $2.5 million grant from the Victorian State Government towards expanding the state wide network of LNG refuelling stations with five new facilities planned for Victoria.

Victorian Minister Denis Napthine said that the current LNG infrastructure for commercial vehicles in Victoria was limited and further expansion required significant investment.

“As a transport fuel, LNG provides us with the opportunity to significantly reduce particulate, CO2 and nitrogen oxide emissions compared with traditional transport fuels,” Dr Napthine said.

Wodonga is earmarked as the first site for a potential refuelling station, based on activity in the north-south transport corridor along the Hume Highway and growing customer demand in the area.

Kleenheat Gas General Manager, Graham Smith said the company was delighted at the support shown by the Victorian Government to the project.

“There are many benefits to using LNG as a transport fuel but a hindrance to greater uptake of the technology has been a lack of refuelling infrastructure,” Mr Smith said.

Image: Kleenheat Gas General Manager Graham Smith (L) with Victorian Minister for Ports, Regional Cities, Major Projects and Racing, Denis Napthine

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