Environment Protection Authority Victoria (EPA) has received an application from Esso Australia Pty Ltd for a development licence to build three power generators on Bayview Rd, Hastings next to the Esso liquid petroleum gas (LPG) processing plant using the excess ethane gas by-product of the LPG manufacturing process, to fuel the generators.
 
According to the application, production of LPG is declining and with it the levels of excess ethane being produced. Esso anticipates the power generation plants would only be required until 2033. 

EPA will assess the application based on the potential impacts to the local environment and community including noise, water and air quality as well as what ongoing monitoring would be required to ensure all necessary criteria continue to be met, if the application is successful.

Background
Oil and gas from Bass Strait are sent to Longford for processing into crude oil, natural gas and other products. The natural gas liquids (ethane, propane and butane) are sent to the Long Island Point Fractionation Plant (LIP) in Hastings, operated by Esso Australia Pty Ltd (the applicant), for further processing prior to LPG being distributed locally and internationally. The ethane by-product of this process has, for many years, been sent through a pipeline to a customer in Altona for plastics manufacture. When the customer is unable to accept the ethane, Esso either needs to reduce the gas liquids flowing to Long Island Point, reducing the supply of propane and butane to Victoria, or need to flare the ethane. In some circumstances, this could result in the need to significantly curtail natural gas supply to reduce the production of these gas liquids, which would impact the supply of natural gas to Victoria. 
 
In the event the customer is unable to accept the ethane, Esso requires an alternative use for the ethane. According to the application, generating power from ethane, will enable Esso to safely and reliably utilise undersubscribed ethane, thus avoiding the need to flare this gas at Long Island Point or reduce natural gas production for the south east Australian gas market.

To find out more and to have your opportunity to contribute, please got to www.epa.vic.gov.au/esso-pty-ltd
Public submissions will be taken up to until 13 April, 2022.

What is a development licence?
To perform prescribed activities that may cause harm, you must have a permission such as a licence, permit or registration. 
Permissions work alongside the general environmental duty, ensuring performance standards and conditions are met across a range of activities. There are three tiers of permissions based on the level of risk to human health and the environment: 
            1. Licenses for high-risk prescribed activities.  
            2. Permits for medium-risk prescribed activities.  
            3. Registrations for low-risk prescribed activities.  
This risk-based approach means we can target different levels of risk with the right balance of permissions and conditions. Our Permissions scheme policy (publication 1799) outlines:  
            • your role, as the permission holder, in ensuring compliance and preventing harm  
            • what we consider when assessing an application for a permission  
            • how permissions work to manage the risks related to prescribed activities
Find out more at https://www.epa.vic.gov.au/for-business/new-laws-and-your-business/permissions