Development in acquisition of Origin assets

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Lochard Energy has received Australian Competition Consumer Commission (ACCC) approval for its proposed acquisition of the Heytesbury depleted gas reservoir assets from Origin Energy.

Lochard owns and operates the underground gas storage facility at Iona, near Port Campbell, which is currently the only underground gas storage facility in Victoria.

The Heytesbury assets are depleted gas reservoirs located near the Iona facility, which may have potential for underground gas storage development. Lochard is paying Origin a nominal amount for the assets.

With underground gas storage facilities becoming increasingly important in helping to manage supply risks, the ACCC’s investigation focused on competition for the supply of underground storage in Victoria and South Australia.

“Lochard has a dominant position in the supply of underground gas storage in southern Australia, however we found that another operator is unlikely to be able to viably develop the Heytesbury assets, due to technical and commercial uncertainties,” Rod Sims, Chair of the ACCC, said.

“On the other hand, Lochard may have the option to use its existing Iona infrastructure and develop the Heytesbury assets for incremental gas storage.”

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