Iona

Iona Gas Storage Facility

• The Iona Gas Storage Facility is an underground gas storage site located in Victoria, Australia.
• It is a critical component of Australia's energy infrastructure, particularly for managing gas supply and demand on the East Coast Gas System.

Agreement and Operations

• Snowy Hydro, an integrated energy provider, has signed a 25-year gas storage agreement with Lochard Energy starting January 2028. This agreement allows Snowy Hydro to utilize the stored gas to operate its gas-fired power stations, supporting the company's role in managing intermittency in the National Electricity Market.

Expansion and Development

• Lochard Energy is planning to expand the Iona Gas Storage Facility as part of its Heytesbury Underground Gas Storage project. This expansion will continue to provide critical energy storage services in Victoria.

Hydrogen Storage Initiative

• Lochard Energy is also conducting a feasibility study, partially funded by the Australian Renewable Energy Agency (ARENA), for the H2RESTORE Project. This project aims to develop underground hydrogen storage capabilities, potentially repurposing existing gas storage assets and contributing to Victoria's hydrogen economy.

Context and Significance

• The agreement and expansion come at a time when Australia is transitioning towards cleaner fuels, including renewables, and facing potential gas supply shortfalls due to the depletion of southern storage inventories. The Iona Gas Storage Facility plays a crucial role in mitigating these risks.