AGIG and GB Energy have entered into a non-binding but exclusive transaction process deed for development of Golden Beach gas field
AGIG seeks to help commercialise the gas field in Victoria's eastern coastline. (Credit: Australian Gas Infrastructure group)
Australia’s gas infrastructure developer Australian Gas Infrastructure Group (AGIG) is planning to make an initial investment of A$200m ($127.7m) to help commercialise the Golden Beach gas project, offshore Victoria.
The move is a part of non-binding but exclusive transaction process deed signed by AGIG with the Golden Beach gas field owner and developer Golden Beach Energy (GB Energy).
AGIG said that the investment would help in delivering improved gas energy security to the East Coast gas market in addition to enhancing supply volumes to Victoria.
The process deed allows the two firms to negotiate and execute documentation required for AGIG to fund, build and operate the midstream infrastructure for the Golden Beach Gas Project.
AGIG CEO Ben Wilson said: “As renewable energy penetration increases, gas demand will become more variable as gas fulfils a crucial firming role. This increases the need for storage.
“AGIG’s experience in delivering WA its largest gas storage facility will be very helpful for the project. Golden Beach’s stored gas will help guarantee future gas supply to customers to meet the domestic market.”
Golden Beach gas field to be commissioned as early as 2022
Scheduled to commence production as early as 2022, the Golden Beach field will produce gas, which will be delivered to the Longford Gas Hub and its associated strategic pipeline infrastructure, approximately 20km away in East Gippsland.
AGIG said it is also working with GB Energy to invest approximately A$145m ($92.6m) in the development of the Golden Beach Gas Project’s upstream infrastructure.
The upstream infrastructure includes plant, property, equipment and activities related to drilling and producing gas from the Golden Beach gas field.
GB Energy CEO Tim Baldwin said: “A long-term collaboration with AGIG will complement the GB Energy team and when coupled with the Origin Energy contracts announced in 2019, ideally positions the Golden Beach Gas Project for the future.
“The project will provide Victoria with new domestic gas supply in the short-term. The overall investment in critical energy storage infrastructure will then provide a range of ongoing benefits to an evolving East Coast market.”
Last year, AGIG was selected by Woodside for the pipeline component of its Pluto-North West Shelf (NWS) Interconnector.