Major industrial gas company BOC will undertake a key redevelopment of its Dandenong small-scale liquefied natural gas facility in Australia, to provide additional LNG for the Victorian market.

The late-September announcement demonstrates the company’s long-term commitment to LNG for the domestic market, while the main beneficiaries will be the emerging fleet fuelling market according to BOC.

Alex Dronoff, BOC general manager LNG, said, “We are currently the only company producing LNG for the domestic market in Victoria and the redevelopment is an important part of our $150m investment plan into the LNG market on the east coast.”

BOC has been using a large portion of the LNG produced to liquefy its gaseous nitrogen, which is sold to the industrial market. The company will now be installing a new nitrogen liquefier and upgrading its LNG plant.

“This will enable us to release the LNG direct into the market and increase our supply of LNG from 50tpd to 150tpd,” Dronoff explained.

BOC became the first company in Australia to produce LNG when it established the Dandenong facility in 1980.

Since then, the company has been producing LNG primarily to support the Victorian gas grid and has stated that the new plant will be on-stream in August 2009.