Oz AGIG Plans Investment in Victoria Gas Project

Gas infrastructure firm Australian Gas Infrastructure Group (AGIG) is looking to invest A$200mn (US$127mn) to help commercialise the Golden Beach gas field, which is being developed by GB Energy Holdings, AGIG said April 23 in a statement.

AGIG and GB Energy have entered into a non-binding but exclusive transaction process deed which sets out the process for negotiating and executing documentation for AGIG’s proposal to fund, build and operate the midstream infrastructure for the Golden Beach gas project, the company said. This would cover all the plant, property, equipment and activities required for the transmission and processing of gas to and from the field.

“The investment will deliver greater gas energy security to the east coast gas market, enhance supply volumes and deliver Victoria a critical gas storage facility to underpin the state's push to renewable energy,” AGIG said.

Gas from the Golden Beach gas field could be delivered as early as 2022 to the Longford gas hub and its associated strategic pipeline infrastructure, approximately 20km away in East Gippsland. The parties are also working towards AGIG's involvement in the estimated A$145mn development of the Golden Beach gas project's upstream infrastructure. This covers all plant, property, equipment and activities related to drilling and producing gas from the Golden Beach gas field.

Last year, Origin Energy agreed to buy the entire gas produced from the Golden Beach field, which is located approximately 3 km offshore in the Gippsland Basin, Australia most prolific gas-producing regions. Origin has also entered into a foundation storage contract if GB Energy transitions the reservoir into an underground storage facility after production.