This project will result in the establishment of the first commercial pipeline-to-truck supply for heavy vehicle transport in Australia. We have formed a new refuelling company that will own and operate a network of six commercial LNG (Liquefied Natural Gas) refuelling stations across Tasmania to manage the fuel logistics needs of most Tasmanian fleets on the major freight routes.

With rising fuel prices and the long-term security of oil supplies under question we began looking for alternate fuels. Our investigation led us to the conclusion that natural gas provides an effective overall solution from a commercial, economic and environmental perspective. This deal represents a A$150 million vote of confidence in the commercial merits of natural gas as an alternative to wholesale use of diesel fuel for road transport in Tasmania.

— Ken Padgett, Chairman of LNG Refuellers Pty Ltd

The LNG plant will have the capacity to produce 50 tonnes of LNG a day—the equivalent of 70,000 liters (18,492 gallons US) of conventional diesel. The trucks used by LNGR members each tend to drive more than 200,000 km/year (124,000 miles/year). The plant will handle 200 truck shifts/day. That is a minimum of 100 double-shifted trucks or a larger number of trucks, some of which do single shifts. LNGR members all currently are using diesel-powered vehicles.

BOC, part of the Linde Group, design, build and operate Micro-LNG plants for the transport market. To secure the LNG supply, BOC will build and operate a new Micro-LNG plant near Westbury, subject to securing all necessary planning and development approvals. BOC became the first company in Australia to produce LNG when it established its Dandenong facility almost 30 years ago.

Linde BOC licensed its Micro-LNG technology from the Gas Technology Institute (GTI). Targeted at 5,000 to 30,000 gallon US (19,000 to 114,000 liters) per day production capability, the system uses mixed refrigerants in a simple refrigerant loop that maximizes system performance and efficiency. The system is packaged into a transportable skid for rapid deployment.

The pre-commercial prototype used a gas engine drive to reduce operating costs and integrate with the gas processing system to capture natural gas vapors. Electric drive options are also possible.

In addition BOC will design and construct the entire supply chain infrastructure for LNG Refuellers including LNG road tankers and six refuelling stations.

LNG Refuellers plans to provide briefings to potential customers in the Tasmanian transport industry over the next six months. LNG Refuellers Pty Ltd, comprises seven Tasmanian transport operators:

• Chas Kelly Transport
• KJ Padgett Pty Ltd
• Aprin Transport
• Les Walkden Enterprises
• Exeter Sawmill
• Country Roadways Pty Ltd
• Kevin Morgan Pty Ltd

(A hat-tip to John!)