Hastings Generation Project
Gippsland gas currently supplies around 40 per cent of eastern Australia’s domestic gas needs through production of oil and gas from Bass Strait.
The Long Island Point Plant has an important role in this supply of energy, processing the associated gas liquids from our Longford gas production, to create ethane, propane and butane.
Propane and butane is sent to domestic and overseas customers via truck, ship or pipeline, while all ethane from Long Island Point is currently provided as feedstock to a petrochemical manufacturing facility in Melbourne’s west.
When the customer is unable to accept the ethane as a result of planned or unplanned maintenance, in most cases, we either need to reduce the gas liquids flowing to Long Island Point, reducing the supply of propane and butane to Victoria, or need to flare the ethane. In some circumstances, this could even result in the need to significantly curtail natural gas supply to reduce the production of these gas liquids, which would impact the ability of Victorians to heat our homes and power our businesses.
To improve community and environmental outcomes, we have identified an alternative for managing excess ethane that benefits our community and will reduce the need to flare at Long Island Point in the future.
Esso Australia and Woodside Energy, the other Gippsland Basin Joint Venture participant, are planning a project to install three small, modern, efficient ethane power generation units at the Long Island Point plant.
These will be capable of converting ethane into 35-40 megawatts of electricity to power Victorian homes, while ensuring we can maintain our reliable supply of natural gas and natural gas liquids across the east coast.
We expect there will be minimal impacts to the community from the project construction, which is set to take place within the existing industrial complex at Long Island Point.
You can read more about the environmental aspects of this project in our Environmental Effects Statement self-assessment and the Predictive Noise Assessment, both which can be downloaded below.
If you would like to receive updates on this project, or have questions, please contact CommunityANZ@exxonmobil.com.