AGL Gets Approval for NSW Gas Plant

AGL Energy has won approval from New South Wales government to build a $310 million gas storage facility at Tomago near Newcastle.

The plant, which will be capable of processing up to 66,500 tonnes of liquefied natural gas (LNG) per year, is expected to be completed by 2015.

The project has been facing resistance as opponents say it poses a risk to the region's water supply. However, the company has said it has an ongoing hazard management plan for the site.

Mike Moraza, the AGL upstream gas group general manager, said: “This facility will enable AGL to meet the growing demand for gas by the people and businesses of NSW.” AGL will be able to cater to 70,000 customers, he added.