Victoria Seeks to Add More of State to Australia's National Gas Network

---

Researched by Industrial Info Resources Australia (Perth, Australia)--Much of regional eastern Australia is still without a connection to Australia's gas network, despite the nation's vast natural gas resources. This is primarily because of the high cost of constructing high-pressure gas pipelines across such a vast landscape, coupled with the relatively low population density.

The state government of Victoria is taking a steps to change this situation by allocating $96 million (AUD$100 million) of the $960 million (AUD$1 billion) Regional Growth Fund to connecting a number of regional Victorian towns to gas. This strategy is called the "Energy for the Regions Program."

The program has three broad initiatives:

• To fast-track the delivery of natural gas to 14 towns: Avoca, Lakes Entrance, Invermay, Winchelsea, Heathcote, Orbost, Warburton, Marong, Bannockburn, Terang, Maldon, Huntly, Wandong-Heathcote Junction and Koo Wee Rup
• To invest in a major upgrade of Mildura's natural gas supply capacity
• To invest up to $960,000 ($AU 1 million) to fund a feasibility study for the provision of natural gas to Victorian communities along the Murray River

In April this year, Peter Ryan, the Minister for Regional and Rural Development, announced that the town of Avoca would be the first to be connected. More than 700 properties will have the option to connect to the network after a six-mile (9.6-kilometre) supply pipeline and more than nine miles (16 kilometres) of reticulation pipeline are constructed. Natural gas is expected to be available in Avoca by the winter of 2016.

Bannockburn will be the next to be connected. Approximately 5.5 miles (nine kilometres) of supply pipeline and at least 26 miles (42 kilometres) of reticulation pipeline will be required to supply the 1,400-plus properties in the town.

Some smaller towns in the region will have reticulation pipeline networks that will be supplied with compressed natural gas via regular delivery by road transport, then stored at facilities on the outskirts of town.

SP AusNet Pty Limited (Melbourne, Australia), a subsidiary of Singapore Power International Pty Limited (Singapore, Singapore), will operate the pipelines and gas supply in conjunction with the state government.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.