Ryans turns to LNG to cut costs

By: Jason Whittaker


Transport company Ryans has joined a consortium pushing for a liquefied natural gas pipeline in Victoria’s south-west as a long-term

Transport company Ryans has joined a consortium pushing for a liquefied natural gas pipeline in Victoria’s south-west as a long-term alternative to diesel.

If successful, the proposed $150 million project will establish Victoria’s first micro LNG plant with up to six refueling stations across the region capable of supplying 50 tonnes of LNG a day – the equivalent of 70,000 litres of diesel.

Industrial gas company BOC and the South West Sustainability Partnership are proposing the scheme and this week held meetings in Warrnambool to rally support for it.

Because of Victoria's large gas reserves, Graham Ryan from Ryans says his company and his customers will be protected from price surges which have plagued diesel in recent times.

"We are trying to keep up with the times. I think it [LNG] is the future," Ryan says.

As well as cutting greenhouse emissions by 20 to 25 percent, LNG is also tipped to reduce maintenance costs and engine noise.

"These are the basic savings you could see happening," Ryan says.

The the pipeline's construction now relies on a commitment from transport companies, with BOC General Manager Alex Dronoff saying the pipeline can be built within two years if demand is there.

"If demand grew, and early indications are positive, there would be the capacity to develop another module to double the output of the plant," he says.

A similar micro LNG plant – the first in Australia – is in the process of being developed in Tasmania. There are similar plants in USA and England where liquefied gas is made from recycled landfill gases.

The South West Sustainability Partnership spoke to BOC about a Victorian plant after learning of the Tasmanian project.

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