About

A: The Golden Beach Energy Storage Project (Project) involves the development of the Golden Beach gas field for long term use as a storage facility – storing domestic gas in times of low demand and supplying this stored gas to the domestic market in times of high demand.

The Project will initially deliver natural gas into the domestic market for a period of approximately 12 months and will then transition to providing stored gas to the market.

A: The Golden Beach gas field is located 3km offshore from the Ninety Mile Beach, just south of Golden Beach. The size of the field is approximately 3km east to west and 2.5km north to south.

The top of the gas field is approximately 620m beneath the seabed and the gas column is about 32m thick.

It will be developed with a submerged or buried pipeline and sub-sea wells that will connect to a gas compressor station located near the Longford Gas Plant.

A: The Project is aiming commence providing gas into the domestic market during the first half of 2025. Storage is planned to commence in 2026.

Offshore, GB Energy will be drilling an appraisal well in June & July 2023. This will collect geological samples and recover gas samples. Once drilling is finished, the well will be plugged and abandoned. This means the well is filled with cement and the pipes cut at the seabed. The information gathered from this well will be used to finalise the placement and design of the future production and storage wells.

The drilling of the subsequent production wells will be subject to regulatory approvals and the availability of a suitable rig drill.

Construction operations will span 2023 and 2024, both on and offshore.

Onshore work on the pipeline and gas compression facilities is expected in late 2023 and through 2024.

A: GB Energy has completed an extensive number of environmental studies through the Environment Effects Statement (EES) process that was conducted from 2019 to 2021. This process was assessed favourably and the impact of the Project through construction and operation will be managed in line with all this work.

In addition, by being able to provide on-demand or dispatchable energy, the Project will provide significant support for the transition to renewable energy. This is done by providing energy at times when wind or solar conditions are not favourable for power production.

A: GB Energy is an independent Australian energy company, with its head office located in Melbourne.

It is not listed on the ASX or any other stock exchange but has about 80 shareholders who are sophisticated and knowledgeable investors.

Our team has a deep understanding of the Eastern Australian energy markets and considerable experience in developing major energy infrastructure projects.

A: Yes, GB Energy will drill an offshore appraisal well Golden Beach-2 (GB-2), in June and July 2023.

A Geotechnical Survey is also possible in late 2023.

A: The jack-up drilling rig will be mobilised to a point approximately 3.4km from the shoreline, near the township of Golden Beach in Southeast Victoria. The Geophysical Survey conducted in 2020 by GB Energy, conducted low intensity seabed investigation works over an area of approximately 4 square kilometres. This information gathered supported the positioning for this well and future development infrastructure, by ensuring the seabed was free from obstructions.

A: Yes. At 3.4km from shore, the rig will be visible. At night, the rig and drilling support vessels will be lit up.

A: Mostly likely, the drilling rig will not be heard from shore, barring extreme calm seas and the correct wind conditions. There are no seismic surveying operations in this drilling operation.

A: The well will be drilled in June and July 2023. The jack-up drilling rig will be on location for approximately 25 days.

A: The Golden Beach Gas Field was discovered in 1967, since then modern technologies to evaluate and characterise the geological environment have improved greatly. By collecting modern data sets and samples of the gas and rock, the Project can further optimise the design for storage operations.

A: Yes. There will be a 500m (radius) Petroleum Safety exclusion Zone (PSZ) centred around the drilling rig, which is commonplace at existing oil & gas platforms in the Bass Strait. At all times a drilling support vessel will be patrolling the PSZ to warn other recreational/ commercial vessels, for their own and the drilling rigs safety.

A further safety zone may be in place while the rig is being towed to/ from the location, around the drilling rig and the tow vessels.

A: No.

A: No. Neither the appraisal well, nor development wells involve hydraulic fracturing (fracking) of the reservoir.

A: We commenced consultations in late October 2018, and we are in the first stages of an extensive and ongoing stakeholder engagement program.

Prior to the Covid pandemic, a number of public meetings were held at Golden Beach.

It is our intention to continue to hold regular community meetings now that it is once again safe to meet.

A: We have embarked on a project information program which involves regular face-to-face meetings with stakeholders. We will look to keep the community updated with project information updates and interested members of the community can contact us by phone or email.

A: There was significant opportunity for formal comment on the Project through the EES process which has been favourably assessed.

GB Energy will continue to be open to feedback and at all key stages of the Project, there will be an opportunity for public comment.

A: Issues raised by the community will be dealt with by senior executives of GB Energy and may be escalated to the Board of Directors in case a suitable resolution is not found.

A: The Project is keen to support local community projects and will be seeking those inputs during our consultations with community groups.

The Project has provided regular support to community events, in particular annual events held over the Easter weekend.

We are also talking with the community about longer-term and sustainable community initiatives.

A: We will encourage our contractors to use local goods and services wherever possible. Local vendors are encouraged to contact us via the website, or info@gbenergy.com.au

A: Either by email at info@gbenergy.com.au or on our free toll line at 1800 423 637.

A: Gas storage services involve reinjecting natural gas back into the ground during periods where the primary gas producers produce more gas than is required by the market. Then on days where the gas demand is greater than can be met by the producer’s, stored gas is produced to meet the shortfall.

A: In simple terms, it allows for the development of a more efficient, lower cost system of delivering gas, enhances system security of supply and supports the development of renewable power generating capacity

1.Underground gas storage supports the development of renewable power generating capacity.

The growth of renewable energy, especially wind and solar generated power is displacing high CO2 emitting generation such as coal. The problem with wind and solar is their intermittent nature – the wind does not always blow, and the sun does not always shine.

Short term use of fast start gas fired power generation uses natural gas that has far lower CO2 emissions than coal, is cheaper to build than hydro power, does not require the construction of more dams and has far greater endurance than current battery supply.

Due to the intermittent nature of the renewable sector, underground gas storage facilities are a far more reliable source of contracted gas supply when compared to primary producers who are better placed at selling to base load gas fired power generators.

2. Underground gas storage enhances system security of supply.

Should there be an outage at a primary producer’s facility, underground gas storage provides an alternate source of gas while supply is re-established.

Unlike a primary producer, underground gas storage does not have the long-term underlying resource base, but it can significantly assist in maintaining supply to essential services during unforeseen events.

3. Underground gas storage allows for the development of a more efficient, lower cost system of delivering gas.

The need for gas varies dramatically over the seasons of the year with less gas required in summer and far more required in winter, primarily for heating. Peak demand in Victoria is generally associated with very cold days.

On peak days, we use approximately 50% more gas than we do on an average day and about twice as much gas as we do on low demand days. It is very expensive and inefficient for the gas producing infrastructure (offshore platforms, pipelines and wells) to be sized to meet peak demand, so purpose-built gas storage facilities, capable of very high rates of production are used to meet the shortfall.

This allows primary producers to produce at near constant rates during the year and on days when the primary production is more than market needs, the excess gas is injected into storage. As a result, primary infrastructure is made more efficient and the purpose-built storage facility is fully utilised, reducing the overall cost of delivering gas to the market.

A: As described earlier, the first offshore programs will commence in 2023.

There will then likely be subsequent operations in late 2023 and 2024. None of these operations are long term.

A: Typically, the seabed architecture is approximately 10m x 10m for a single well. The Project anticipates having two sub-sea wells.

A: Yes. There will be vessel restrictions around the well-head locations and across the pipeline route.

When drilling is taking place, there is a 500m exclusion zone around the drilling rig.

Recreational fishing should not be impacted at any stage.

A: The Project footprint is small, and all facilities will be designed to minimise potential impacts by having fisher friendly structures projecting them.

We are in frequent dialogue with fishers about the Project and will discuss any concerns they may have and how to minimise them.

A: The sub-sea architecture will extend approximately 6m above the seabed. This equates to a depth of approximately 12m below sea level.

A: This will not be known until we complete the pipeline design studies.

A: Studies conducted in the area show the seabed has a sandy bottom and few significant formation structures.

Closer to the beach there may be nearshore reef which will be avoided, wherever possible.

A: The installation and operation of the facility is designed to have minimal impact on the environment and amenity. Once the sub-sea equipment is installed there will be no visible signs of the Project.

The pipeline will be drilled or tunnelled under the nearshore and shore crossing area and will not be visible.

A: GB Energy are developing a Local Content Plan which requires all our contractors to source goods and services locally, wherever possible.

A: The water depth mandates that we will use a jack up rig. This is a mobile drilling rig that floats onto location and then jacks up on 3 legs to provide a stable drilling platform.

A formal tendering process will be conducted to contract a rig and a rigorous regulatory acceptance process will follow.

A: For the 2023 appraisal activities, the rig will be on location for about 3 weeks.

For the later development wells, the rig may be on location for up to 3 months.

Both of these estimates will be subject to weather and operational progress.

A: The drilling location will be approximately 3km from the nearest shoreline and will therefore be visible from the beach whilst it is undertaking offshore work.

A: During the drilling campaign the jack-up rig will be lit at night.

A: Yes, all drilling rig activities will be conducted in accordance with regulatory approved processes and procedures.

They will also be conducted in accordance with the rig contractors approved standards and our well management system.

A: Golden Beach is a dry gas field and does not contain oil.

We have in place an oil pollution emergency plan (OPEP) including rapid response deployment capabilities from ORCA and other measures which are coordinated with Victorian and Commonwealth response agencies should a spill occur from a service boat or the drilling rig.

A: Drilling related waste material will be treated in accordance with the regulatory approved Environmental Plan.

All drilling related liquids pumped down the wells and returned to surface will be water based.

A: The pipeline is likely to be 18-inch (457mm) diameter.

A: Subject to finalising the route selection work, we expect it will come ashore approximately 3kms south of Golden Beach towards Glomar Beach, possibly at Delray Beach near to an existing wastewater outfall.

A: The Project development includes a shore crossing that goes under the beach via a trenchless pipe-laying method.

Horizontal directional drilling (HDD) is commonly used with the main operations taking place behind the sand dunes.

A: Horizontal Directional Drilling and Direct Pipe methods are construction techniques used to enable pipelines to be installed under sensitive or inaccessible areas, in this case the beach and dunes. A conduit is created through which a pipeline can be threaded such that it connects the onshore and the offshore sections with minimal environmental impact.

Once onshore, it will be trenched and buried through to the gas plant then connected into the Victorian Transmission System and/or Eastern Gas Pipeline.

A: The pipeline is expected to break out of the seafloor 1km to 1.5km beyond the shoreline and have no impact on recreational fishers.

A: Further studies will determine the appropriate installation manner to minimise environmental impact. There is an existing Gippsland Water waste-water outfall line easement across this area and GB Energy is looking to install the pipeline adjacent to this in a way that any impact on the area is as short and least invasive as possible.

A: Yes, and we have already been actively engaged with the owners of these properties.

A: We will be discussing all matters that concern landowners with the appropriate landowner.

A: We have already reached agreement with a number of landowners.

A: Yes, these have been completed. We have a Cultural Heritage Management Plan that has been endorsed by GLAWAC as the Traditional Owners representative body for the lands on which the Project is based. This identifies key areas of heritage significance and has informed route and construction methodologies.

A: A site has been identified as part of the EES studies and is consistent with our objectives to ensure the location of a gas plant has minimal environmental and social impacts. We have had successful discussions with the landowner of this site.

A: The site will be located on a land site of approximately 500m x 500m, with the facility only approximately 100m x 100m.

A: The gas does not contain any oil or liquids so will simply be dehydrated and compressed.

A: The compressors will be housed in insulated, sound-proof enclosures and have silencers fitted to the exhausts.

A: Flaring is not planned but there will be some form of “safety valve” as part of the gas plant’s safety system.

A: The plant will be located well away from residential areas.

A: Once the field has produced gas for just over a year, it will transition to energy storage operations.

The initial production will create space in the reservoir to store gas. The production will also provide information on reservoir performance that will allow GB Energy to optimise storage operations.

A: The location of the gas compressor station near Victoria's principal gas supply hub at Longford will enhance efficiency and security of domestic gas supply.

Gas storage facilities are developed in such a way that gas can be easily stored during periods of low demand and promptly produced during periods of peak demand.

Gas power generation is a flexible form of energy supply that in turn supports the development of renewable energy generation, such as wind and solar. Gas fired power generators can run when there is insufficient wind, or sunlight, to make electricity available into the grid.

A: The volume (amount of gas) and nature (dry gas, no oil) of the gas accumulation has meant that the field has not previously been considered commercially viable.

GB Energy believes that given the objective of an energy storage development, the Project is commercial although and a final investment decision (FID) is expected to be taken in 2023.

A: Minimal if any at all.

The Project will produce a negligible amount of gas compared with the total oil and gas (and water) production that has occurred in the Gippsland basin. There is no intention of producing free water. The transition to gas storage, requires gas to remain in place, minimising possible impact to the aquifer.

A: Yes.

It has been extensively used world-wide for more than 100 years and the technology is well understood.

Victoria has had a commercial gas storage operation in the Otway Basin (Iona) which has been operating safely for 20 years. There are several others in commercial operation here in Australia and hundreds globally.

A: No. Neither the appraisal well, nor development wells involve hydraulic fracturing (fracking) of the reservoir.

A: The storage gas will come out of the connected gas market that operates in eastern Australia. Practically speaking the gas is most likely to have been produced in the Gippsland Basin.

A: No.

The GB Energy Project is totally independent of the CarbonNet project.

The CarbonNet project is sponsored by both the State and Federal governments and relates to the capture and sequestration of Carbon Dioxide (CO2).

They are fundamentally different businesses.

A: Yes. As a neighbour to our permit area, we communicate with CarbonNet on a regular basis, as we do with all stakeholders in our project.

A: At times we may share resources and services with CarbonNet where there is the opportunity to minimalize the impact upon our local community and environment.