Australia's Snowy Hydro pens gas storage deal with Lochard Energy
Australian power producer Snowy Hydro has signed a 25-year gas storage agreement with Victoria-based Lochard Energy at the Iona underground gas storage facility to support its gas-fired generation fleet, the company announced on July 15.
The long-term Lochard storage deal will allow Snowy Hydro to utilise stored gas when required to operate its gas-fired power stations. The agreement will commence in January 2028.
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Snowy Hydro CEO Dennis Barnes said that reliability and security of supply are central to the way Snowy Hydro operates, maintains, and develops its nationally critical infrastructure.
“Snowy Hydro’s generating portfolio of hydro, pumping, and gas-fired power stations continues to support further deployment of renewables into the grid by firming intermittent generation sources into reliable power. The gas storage agreement with Lochard Energy will support the operation of our gas-fired power stations in Victoria,” Barnes said.
Gas storage is essential to ensure the supply of gas to meet peak electricity demand in seasonal markets, to supply gas to peak power generators including Snowy Hydro, and to ensure security of supply in the event of supply disruption.
Snowy Hydro owns and operates three gas-fired power stations, located in the LaTrobe Valley and Laverton in Victoria, and at Colongra in New South Wales, with a current total generating capacity of 1,290 MW. Snowy Hydro is also constructing a 660 MW gas-fired power station at Kurri Kurri in the Hunter Valley.