The Tasmanian reticulation project uses gas from the transmission pipeline (owned by Alinta) which is already in place from Victoria, across Bass Strait into Tasmania and down through the main population centres of the state to Hobart. Powerco’s gas backbone network tees off this transmission pipeline.

The agreement with the state provides Powerco with the approval to distribute natural gas to Tasmania’s major industrial, commercial and residential customers.

Powerco began work on the project in May 2003 with the commencement of the design process. The first stage of the project, which was completed in July 2005, involved the laying of 100 km of gas pipe in the urban areas of Hobart, Launceston, Longford, Westbury, Bell Bay, Wynyard and Devonport.

The total initial investment for stage one of the project was approximately $34million. Major contracts were awarded to Agility Management and KT Pty Ltd.

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Stage two construction, which is scheduled to be completed by the end of 2007, is being rolled out progressively as customers sign on.

Powerco has invested a total of $150 million in Tasmania’s natural gas rollout with the state government contributing $56 million.

More than 3,800 customers are now connected to natural gas, more than 200 connections are being made per month and Powerco currently has thousands of new applications for gas being processed. The natural gas network now passes by more than 40,000 homes and businesses.