Gas plan sparks jobs


$550 million gas pipeline project will ignite an economic and business boom in Maitland by supplying cheap gas from Queensland to the region, according to its developers.
The high pressure pipeline will be built between the Wallumbilla Gas hub in south-east Queensland and Hexham, forming the "missing link" in the eastern Australian gas network.
The State-significant project has been proposed by the Hunter Energy consortium of Hardie Holdings, Hunter Land and Weston Aluminium, with financial backing from ANZ Infrastructure Services.
During an exclusive briefing on Friday, Hardie Holdings general manager Matt Somers told the Maitland Mercury the pipeline would drive down prices by providing competition for gas supply in the region.
This would significantly increase business interest in areas including the Rutherford, Beresfield and Thornton industrial estates as well as the Hunter Economic Zone near Kurri Kurri, he said.
Residential gas users would also benefit from the price war.
About 800 jobs are expected to be created in regions along the length of the 850km pipeline during its construction, with an additional 150 employees needed once it becomes operational.
Hunter Energy is also in the process of finalising approval for a 37km pipeline that will travel from Seahampton via the Hunter Economic Zone and Weston to the Rutherford industrial estate.
It is worth $15 million and is expected to create up to 100 jobs during construction.
The two pipelines will link up at Rutherford, before passing through Maitland to join the existing Newcastle gas pipeline at Hexham.
Mr Somers said the pipeline projects would work in conjunction to provide a secure supply of cheap gas to businesses and residents located along their routes, including Maitland.
"This will deliver some of the cheapest gas in Australia to the Hunter," Mr Somers said.
"One of the prime drivers in industrial-type businesses relocating is not only the cost of the land but the total energy costs of that business.
"This (pipeline) will bring in competition, which will drive down (gas) prices and make our region more competitive and attractive to business.
"It will also make businesses already here more competitive."
Mr Somers believed the news of the proposed pipelines had already made a difference in the marketplace, with AGL announcing a 15 per cent reduction in costs for its industrial users.
But it's not just Maitland businesses that will benefit from the project.
Mr Somers said there would be a potential to tap the gas supply for domestic use in areas along the route.
Construction of the Seahampton to Rutherford pipeline is expected to begin in about three months, with in-principle approval for the Queensland to Hunter project from the NSW Government likely by the end of the year.
The section of the pipeline across the border is hoped to receive the green light from the Queensland Government in the first quarter of 2007.
Mr Somers said construction of the Queensland to Hunter pipeline would take between 12 and 15 months.
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