In the first gas rollout in Victoria since the 1970s, 34 regional towns across Victoria will be connected to natural gas through a team effort by several companies, with partial funding supplied by the Victorian Government.

The Victorian Government announced $70 million funding for the rollout through the Regional Infrastructure Development fund in 2003, in response to strong community demand for natural gas.

Since then, three companies – Multinet Gas, Envestra and SP Ausnet – have taken on responsibility for different areas of the project.

SP Ausnet is managing the project across several towns in the Macedon Ranges. Macedon and Woodend are now connected to natural gas, both ahead of schedule. The first residents in Macedon were signed up in September 2006. The outstanding performer in the Macedon Ranges has been Woodend, with over 700 people signing up.

The supply main in Gisborne has just been completed, marking an important phase in this town. Now that the supply main is completed work on the reticulation and other areas can proceed ensuring the town will have its first natural gas connections by February. Construction is also progressing at other towns in the Macedon area, including Romsey, Lancefield and Riddles Creek, where connections are due in the second half of 2007.

SP Ausnet is also responsible for the rollout at Creswick, Barwon Heads, Maiden Gully, Port Fairy and Camperdown. Connections are complete at Creswick, where almost 600 customers have so far signed up, and in Port Fairy, where 500 customers have signed up in less than four months. Barwon Heads and Camperdown are due for first connections in mid-2007.

Port Fairy’s first customer, Doug Maxwell, was connected to natural gas last year. Mr Maxwell is the owner and operator of Clonmara, a Bed and Breakfast retreat, and had all his units connected.

“Our home, and all the units now have natural gas heating, cooking and hot water. This is great for me as it means significant cost savings, reliability and the added inducement of it being a more environmentally friendly energy source which I personally find comforting,” Mr Maxwell said.

Multinet Gas is reticulating natural gas in several towns across the Yarra Ranges and South Gippsland, and has contracted Alinta Asset Management to be the project manager responsible for the construction, operation and maintenance of the new gas network.

The construction of the pipeline is proceeding well and is several months ahead of schedule. To date, the gas distribution mains in the five townships of Yarra Glen, Wandin, Seville, Seville East and Woori Yallock have been completed.

Construction of the gas distribution mains is now happening in the township of Launching Place, including Don Valley, and the plan is to finish Launching Place by early 2007. After this, construction will commence in Yarra Junction in early 2007 which is expected to be completed by mid-2007. To date, there have been well over 2000 new service requests with over 1,600 new gas customers connected in the Yarra Ranges and experiencing the benefits of natural gas.

Alinta Asset Management plans to commence the gas distribution in the townships of Wesburn and Millgrove in mid-2007, with completion of the total project scheduled for 2008.

Multinet Gas connected its first customer, the Woori Yallock Hotel, in September 2005.

“The Woori Yallock Hotel is the first customer in the Yarra Ranges to experience the benefits of safe, reliable and affordable reticulated natural gas,” said Multinet Gas CEO Hugh Gleeson.

Multinet Gas is also working to connect five towns in South Gippsland to natural gas – Lang Lang, Korumburra, Leongatha, Inverloch and Wonthaggi. This part of the project will involve the construction of over 250 km of transmission and distribution pipelines at a cost of approximately $50 million, passing 10,000 properties.

All initial planning, design, engineering, environmental and cultural heritage studies for the project have been completed, with construction planned to commence in early 2007.

Envestra are also busy reticulating several towns across the state. Some domestic and industrial customers are currently connected at Bairnsdale, where reticulation is progressing well. Mains have been laid and commissioning is complete in Paynesville, and work on the 19.9 km of reticulation in this area continues.

Progress in the installation of the 18.67 km of reticulation at Hurtsbridge has been slow due to extensive rock associated with the Hurstbridge geology. To date 4.10 km has been installed, and a 3 km section of main in South Hurstbridge is being laid in a common trench with a Council road drainage upgrade.

Envestra are also currently reticulating five towns on the Mornington peninsula, including Balnarring, where first customers have been connected and St Andrews Beach, where first customers are receiving gas. At Somers, 2.5 km out of 23.8 km of reticulation has been completed and at Balnarring Beach, construction of reticulation is underway and due for completion in March 2007. At Merricks Beach, construction is scheduled to commence soon, and Envestra plans to seek tenders for the 4.32 km of reticulation in the town. Many service applications have been received across the Mornington Peninsula to date.

The use and demand for gas has grown as its environmental and economic benefits become more accessible and better understood, and the Victorian Gas Reticulation project promises to give thousands of Victorians access to this cleaner, cheaper natural resource.