Australia's East Coast Gas Network to Add Tanunda to Distribution

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Researched by Industrial Info Resources Australia (Perth, Australia)--The gas network that runs the length of the east coast of Australia is continuing to grow with the recent announcement by Envestra Limited (ASX:ENV) (Adelaide, Australia) of plans to connect the South Australian town of Tanunda to the gas network. Despite being only a short distance from the Moomba-Adelaide Pipeline System, known as "MAPS," the town of 3,500 people does not yet have access to natural gas.

MAPS transports natural gas from the Moomba facility, which is owned by Santos Limited (ASX:STO) (Adelaide, Australia) and is located in the Strzelecki Desert, to the city of Adelaide. In order to connect Tanunda to the gas network, a 1-mile (1.61-kilometre), high-pressure lateral from the MAPS, followed by a 2-mile (3.22-kilometre) main trunkline, will be laid, along with a 12-mile (19.31-kilometre) reticulation pipeline network.

Construction on the US$8 million (AUD$9 million) project is due to commence in September, but it will take up to three years to connect all potential customers in the town. "Industrial and commercial consumers will be the first to be connected to natural gas, commencing in May 2014," said Ian Little, the managing director of Envestra. "But we will be looking to supply households located on the new distribution network as soon as possible."

After Tanunda, the South Australian government plans to begin connecting more regional centres to the gas network, following the lead of the Victorian state government, which earlier this year announced its Energy For The Regions Program. The US$89 million (AUD$100 million) program has been developed to fast-track the delivery of natural gas to 14 towns in regional Victoria.

In April this year, the Minister for Regional and Rural Development, Peter Ryan, announced that the town of Avoca will be the first to be connected.

More than 700 properties will have the option to connect to the network after a 6-mile (9.66-kilometre) supply pipeline and more than 9 miles (14.48 kilometres) of reticulation pipeline are constructed. Natural gas is expected to be available in Avoca by the winter of 2016.

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