The off-take station will connect three kilometres of polyethylene (PE) pipe, construction of which is expected to commence this week, to the Alinta transmission system.

The pipeline, to be installed by AGL’s Agility Management Pty Ltd, will service Bonlac Foods Limited’s dairy manufacturing operation at Wynyard.

Powerco signed a Memorandum of Understanding with Bonlac in March this year to connect the dairy manufacturing company to Powerco’s gas distribution network.

Powerco Project Manager Barry Parsons said construction of the off-take station would take approximately eight weeks to complete while the pipeline construction should be completed within a month.

"We are working to make gas available to Bonlac by the middle of July," he said.