Snowy Hydro has entered into a 25-year gas storage agreement with Lochard Energy at the Iona underground gas storage facility to support Snowy Hydro’s gas fired generation fleet.
Australia’s energy market continues to experience significant change with the uptake of renewables and the progressive closure of coal fired assets. Snowy Hydro helps manage intermittency in the National Electricity Market (NEM) through its portfolio of power stations including the Snowy Scheme.
The long-term Lochard storage deal will allow Snowy Hydro to utilise stored gas when required to operate its gas fired power stations.
Snowy Hydro CEO Dennis Barnes said reliability and security of supply is 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.”
Lochard CEO Tim Jessen said Lochard welcomes the opportunity to strengthen its relationship with Snowy Hydro through the signing of the new Gas Storage Services Agreement.
“This important agreement will underpin Lochard’s Heytesbury Underground Gas Storage project through which we will further expand the Iona Gas Storage Facility to continue to provide critical energy storage services in Victoria.”
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, strategically located in the LaTrobe Valley and Laverton in Victoria, and at Colongra, NSW. With a current total generating capacity of 1,290 MW. Snowy Hydro is also constructing a 660MW gas fired power station at Kurri Kurri in the Hunter Valley.
The Lochard Energy gas storage agreement will commence in January 2028.