Last Friday, Powerco announced that it had signed distribution and retail contracts with the Tasman Group - owner of the Longford meatworks - for the supply of natural gas to its site. The Tasmanian Government has agreed to provide conditional funding to facilitate the extension of the gas network to Longford (Tasmania).
"Powerco, a member of the AGA, has been demonstrating its strong commitment to the development of Tasmania's gas network, by moving to connect a variety of areas in the State to natural gas in a short time-frame" AGA Chief Executive, Bill Nagle, said.
"The development of any new gas network extension takes time, given the extensive planning that is required and the substantial costs involved.
"In Tasmania's case, this is not just an extension to an existing gas network, but a completely new network itself. Powerco's commitment to developing the network in the short time-frame is, therefore, worthy of noting.
"The signing of this first agreement with an industrial customer is a significant milestone in the development of the State's new gas network.
"The delivery of natural gas to Tasmania will bring many economic, regional and environmental benefits to the State.
"Powerco is clearly pulling out all stops in not only moving to connect a number of the State's major industrial and commercial customers to natural gas, but importantly it is also moving to give a substantial number of the State's residents an opportunity to connect to the network."
