Tanunda Pipeline Begins Construction in South Australia

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Researched by Industrial Info Resources Australia (Perth, Australia)--Residents of the South Australian town of Tanunda will be able to connect to the Eastern Gas Network in May next year, despite the two-month delay of the construction kick-off.

Originally due to commence construction in September, work on the $8 million (AU$9 million) project began in November. Construction contractor Diona Pty Limited (Rouse Hill, New South Wales) began work on the polyethylene reticulation section of the project in town, before moving onto the steel pipe section that will link the town to the Moomba-Adelaide Pipeline System (MAPS).

MAPS is owned and operated by Epic Energy South Australia Pty Limited (Dry Creek, South Australia) and transports natural gas from the Moomba facility, owned by Santos Limited (ASX:STO) (Adelaide, Australia), in the Strzelecki Desert to the city of Adelaide. In order to connect Tanunda to the gas network, gas retailer Envestra Limited (ASX:ENV) (Adelaide) is constructing a one-mile (two-kilometre), high-pressure lateral from the MAPS, followed by a two-mile (four-kilometre) main trunkline and a 12-mile (24-kilometre) reticulation pipeline network.

"Industrial and commercial consumers will be the first to be connected to natural gas, commencing in May 2014," said Ian Little, managing director for Envestra.

A new subdivision is under development on the edge of Tanunda that will include 700 housing blocks. Envestra hopes to make natural gas available throughout this subdivision when it is compete.

"It may take up to three years to connect potential customers in the town," he said. "But we will be looking to supply households located on the new distribution network, as soon as possible."

Paul Matthews, a project manager at Diona, says the company may look to contract out the welding of the high-pressure steel lateral. But given the small nature of the job, the company anticipates carrying out the work with its own workforce.

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