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New Tasmanian Pipeline Builds Duke Energy's Gas Network in Australia

The gas supply will boost industrial growth and spur long-term employment prospects by providing a reliable energy supply. Natural gas will be sold to homes and business

Released Wednesday, September 18, 2002

New Tasmanian Pipeline Builds Duke Energy's Gas Network in Australia

Researched by Industrialinfo.com (Industrial Information Resources Incorporated; Houston, Texas). The Tasmanian Gas Pipeline, Australia's longest sub-sea pipeline project, has been completed by Duke Energy International (DEI), a subsidiary of Duke Energy (NYSE:DUK) (Charlotte, North Carolina). The gas supply will boost industrial growth and spur long-term employment prospects by providing a reliable energy supply. Natural gas will be sold to homes and business, but it was the support of the industrial customer base, which made it possible for DEI to make the necessary investment.

The $246 million project brings natural gas to the island state of Tasmania and connects it to Australia's growing natural gas network. The 732 km pipeline has 302 km subsea and 430km of underground line using 43,300 tons of steel. The project includes the conversion of the 120MW Bell Bay power station from oil to natural gas. The project took four years from concept to the completion of construction.

Launching the pipeline, DEI announced the start of the VicHub project, which will allow gas to flow freely between Victoria, New South Wales and Tasmania through the construction of a link between the Eastern Gas pipeline, the Tasmanian Gas pipeline, and the GasNet Pipeline System. This linking will offer gas retailers greater diversity of supply while providing an effective gas-trading platform. It will enable gas to be bought and sold between states, leading to a more efficient market and greater security of supply for consumers. It will also inject additional gas into Victoria during the peak winter demand periods providing price and service cutailment protection.

Claiming to be Australia's first energy merchant, DEI provides a full range of technical and management services. Its Asia Pacific energy portfolio includes 2,300km of natural gas pipelines in operation and under construction and 860 gross MW of thermal power generation in operation in Australia, New Zealand, and Indonesia.
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