Construction of the Molineux Facility Underground LPG Storage Cavern

The underground storage of LPG and other hydrocarbons is in current commercial use in Northern Hemisphere countries in Europe, Asia and the USA.Elgas Pty Ltd, a 50 per cent joint venture between AGL and BOC, embarked on a worldwide feasibility investigation in 1989 to establish the viability of constructing an underground LPG storage facility in Sydney, Australia, the first of its kind in the country. Elgas recognised that with the limited 19 000 tonnes of storage capacity at Port Botany and the limitations imposed by use of small coastal ships (up to 10 000 tonnes capacity), a larger storage facility was required to utilise higher capacity ships from more remote sources such as the North West shelf and overseas. This would achieve security of supply in high demand periods and economies of scale. The underground option also provides improvements to safety and environmental standards.