Natural Gas – Achieving Our Aims -

The second stage of natural gas delivery in Tasmania is set for successful completion this year.
Acting Minister for Economic Development Steven Kons said today the program would see more than 1300 kilometres of pipeline laid, and the take-up of gas well and truly under way.
Mr Kons said the development of the program now would depend on “organic” growth in response to market demand and no new budget funding will be directed towards extending the network.
“It’s a very strong achievement which has opened up new opportunities for cost-savings and development across the State.
“By the time Stage 2A is finished in the next few months, gas will run past more than 40,000 homes and businesses across the State rather than the 38,500 Powerco originally anticipated.
“That includes up to 4,000 Housing Tasmania homes which will be connected to natural gas in the next two years.
“We have achieved more than we set out to do and the financial advantages are being delivered to business and domestic consumers sooner than even we expected.”
Mr Kons said the speed of the roll-out put the lie to criticism of the roll-out program from both the Liberal and Green Opposition parties.
“They have been critical and sceptical of the program throughout the course of the roll-out.
“Now, not even they can escape the reality of the achievement.”
Mr Kons said the State Government decision that no new budget funding would be directed towards extending the network meant that future roll-outs would depend on commercial viability.
“Now that a critical mass has been reached, it is expected that the gas business will continue to grow in response to market demand.
“The State Government may consider being involved in network extension opportunities which may arise from time to time through Powerco’s commercial network planning and that offer particularly important strategic advantages for economic development.
“Since mid-2006 Powerco’s customer base has been growing by around 200 new accounts per month, which both Powerco and the government agree is very pleasing.
“At the end of 2006, Powerco had 1,835 customers connected to gas, 280 of which were commercial customers.
“At the same time in 2005, there were 295 connected customers, 70 of which were commercial.
“Residential growth is expected to continue gradually as people replace appliances, such as hot water units, at the end of the equipment’s life cycle.
“This Government has secured the benefits of the current widespread gas network for Tasmania in little more than five years after work started on bringing the gas pipelines from Victoria,” Mr Kons said.
“The possibility of making gas available to Tasmanians had been debated since at least 1983, but over the whole period between 1983 and 1998, no practical progress was made. It has taken this Government to put an end to the inaction and actually make gas a reality.
“Business across the state have experienced significant economic and environmental benefits by switching to gas.
“Near Hobart, Zinifex is saving around $500,000 per year by using gas and is achieving significant reductions in greenhouse emissions.
“Australian Bulk Minerals believes that its conversion to natural gas has given it a major economic advantage and has saved Port Latta from closure. By using natural gas, it has reduced its sulphur emissions by 50 per cent, a significant benefit to the environment.
“As well, savings to Hydro Tasmania from converting the Bell Bay Power Station to gas add up to more than $250 million, an incredible saving for Tasmania and vastly outweighing the Government’s financial contribution of $56 million to the gas project.”
People interested in finding out more about connecting their home or business can contact Powerco on 1800 770018 or visit www.powerco.com.au.