NATURAL gas for the Swan Hill region would require significant subsidies, with
current demand insufficient to cover the $67 million cost, a new report has
found.
Deputy Premier Peter Ryan announced the release of the million-dollar
report on natural gas supply to Murray River communities on Friday
afternoon.
The report found “the cost of building any of [the currently
explored options] cannot be fully recovered from the current identified loads
[demand]”.
The study, by consultants GHD Pty Ltd, was overseen by a working
group with members from the State Government and the Murray River Group of
Councils, including Swan Hill Rural City Council’s chief executive
officer.
“While parts of Campaspe Shire, Moira Shire and Mildura Rural City
have access to natural gas through existing gas networks, there is no
transmission infrastructure along the Murray River between Echuca and Mildura,
or north of Bendigo,” Deputy Premier Peter Ryan said.
Three potential initial
connection points for a new pipeline to extend from were identified, but only
the Bendigo network had capacity to supply the area without great additional
cost.
“The route which best met study objectives and required the lowest unit
charge was the Bendigo East to Swan Hill option, which includes the communities
of Gunbower, Leitchville, Cohuna, Kerang, Tresco, Lake Boga and Murray Downs,”
Mr Ryan said.
The study found that current gas demand in the Murray River
region was primarily residential.
Residential demand is considered to be
expensive to supply as the dominant use is heating, which is spread across just
a few months of the year — from late April to September.
“This demand
profile, coupled with large distances, a relatively low population density and
the current limited industrial demand in the region impacted adversely on
project economics,” the report states.
For more of this story, see Monday’s edition of The Guardian (24/12/12).
