Snowy Hydro has entered into a 25-year gas storage agreement with Lochard Energy to support Snowy Hydro’s gas fired generation fleet.
Through its portfolio including the Snowy Scheme, Snowy Hydro helps manage intermittency in the National Electricity Market (NEM).
This long-term Lochard storage deal will allow Snowy Hydro to utilise stored gas when required to operate its gas fired power stations.
Snowy Hydro chief executive officer Dennis Barnes said reliability and security of supply is central to Snowy Hydro and its 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,” Barnes said.
“The gas storage agreement with Lochard Energy will support the operation of our gas-fired power stations in Victoria.”
Lochard chief executive officer Tim Jessen said Lochard welcomes the opportunity to strengthen its relationship with Snowy Hydro through this new 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,” Jessen said.
The Lochard Energy gas storage agreement will commence in January 2028.
Subscribe to Energy Today for the latest project and industry news.