Dr LIM - 1995-10-11
Given the important financial and environmental benefits of natural gas as an energy source, are there any plans to reticulate to Darwin's major industrial areas?
ANSWER
Mr Speaker, there are plans. Honourable members will be aware that large consumers of energy in the Darwin area, particularly in the Trade Development Zone and the industrial areas of Berrimah, are users of LPG, electricity and liquid fuels that enable them to undertake the activities that they pursue in their particular industries. At present, they do not have the opportunity to access reticulated natural gas supplies, and I am pleased to be able to advise honourable members that that situation is about to change.
Commencing next week, AGL and NT Gas will proceed with the construction of a $3m program to supply reticulated natural gas to the Trade Development Zone and to commercial clients at Berrimah. I want to place on record that the general manager of NT Gas, Chris Harvey, has been a particularly strong proponent of this project in terms of the activities of his company. I am pleased to say that he has shown a fine commitment to it. In the short term at least, the returns on the $3m investment required for the project will not be particularly high, but AGL and NT Gas obviously are looking to the future. They consider this an opportunity to reticulate gas to prospective consumers and I hope their investment will pay off in the future. The project involves the construction of a 23 km, 6 in diameter steel pipe linking the City Gate Gas Terminal near Channel Island with Berrimah. The government has issued a pipeline licence to NT Gas for this project. There will be 2 off-take points, one at Tivendale Road and the other at Berrimah Road. From that main trunk, a plastic low pressure gas reticulation system will connect natural gas to industrial and commercial customers who are presently using other forms of energy.
Previously, the government has examined different ways of putting in place a reticulation system of this kind, but it has been unable to achieve adequate viability. The investment in the Territory's future in terms of providing lower energy costs, cleaner fuel and the benefits of a high quality reliable fuel supply will be evident in the future. The consumers who choose to avail themselves of this natural gas service no doubt will reap those benefits.
The pipeline to the TDZ will be commenced next week, and it should be completed before Christmas. I hope AGL and NT Gas have the opportunity to connect many consumers in the Berrimah industrial area to their supply of natural gas. The reticulation plan will include adjoining areas, such as Palmerston, and it is not inconceivable that, in the future, we may see natural gas reticulated there. That would open up other opportunities. Heavy transport,
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particularly those vehicles that service the Darwin area, and perhaps the NT government's bus service and private bus operators, may be able to consider operating their vehicles on natural gas. They have been unable to do that in the past because it would have been necessary to locate any filling depot near Channel Island, and any efficiencies gained through changing over to natural gas from diesel or petrol would have been negated by the distances travelled to refuel. However, now that natural gas will be available much closer to the city in the industrial area, there may be the opportunity for those operators to consider operating their vehicles on natural gas. The project will open up some new opportunities. It is a major step forward in providing an alternative energy source to industry in the TDZ and at Berrimah. I hope honourable members will join me in extending best wishes to AGL and NT Gas both for their commitment and for the benefits that will derive to the Northern Territory.
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ANSWER
Mr Speaker, there are plans. Honourable members will be aware that large consumers of energy in the Darwin area, particularly in the Trade Development Zone and the industrial areas of Berrimah, are users of LPG, electricity and liquid fuels that enable them to undertake the activities that they pursue in their particular industries. At present, they do not have the opportunity to access reticulated natural gas supplies, and I am pleased to be able to advise honourable members that that situation is about to change.
Commencing next week, AGL and NT Gas will proceed with the construction of a $3m program to supply reticulated natural gas to the Trade Development Zone and to commercial clients at Berrimah. I want to place on record that the general manager of NT Gas, Chris Harvey, has been a particularly strong proponent of this project in terms of the activities of his company. I am pleased to say that he has shown a fine commitment to it. In the short term at least, the returns on the $3m investment required for the project will not be particularly high, but AGL and NT Gas obviously are looking to the future. They consider this an opportunity to reticulate gas to prospective consumers and I hope their investment will pay off in the future. The project involves the construction of a 23 km, 6 in diameter steel pipe linking the City Gate Gas Terminal near Channel Island with Berrimah. The government has issued a pipeline licence to NT Gas for this project. There will be 2 off-take points, one at Tivendale Road and the other at Berrimah Road. From that main trunk, a plastic low pressure gas reticulation system will connect natural gas to industrial and commercial customers who are presently using other forms of energy.
Previously, the government has examined different ways of putting in place a reticulation system of this kind, but it has been unable to achieve adequate viability. The investment in the Territory's future in terms of providing lower energy costs, cleaner fuel and the benefits of a high quality reliable fuel supply will be evident in the future. The consumers who choose to avail themselves of this natural gas service no doubt will reap those benefits.
The pipeline to the TDZ will be commenced next week, and it should be completed before Christmas. I hope AGL and NT Gas have the opportunity to connect many consumers in the Berrimah industrial area to their supply of natural gas. The reticulation plan will include adjoining areas, such as Palmerston, and it is not inconceivable that, in the future, we may see natural gas reticulated there. That would open up other opportunities. Heavy transport,
Page 844
particularly those vehicles that service the Darwin area, and perhaps the NT government's bus service and private bus operators, may be able to consider operating their vehicles on natural gas. They have been unable to do that in the past because it would have been necessary to locate any filling depot near Channel Island, and any efficiencies gained through changing over to natural gas from diesel or petrol would have been negated by the distances travelled to refuel. However, now that natural gas will be available much closer to the city in the industrial area, there may be the opportunity for those operators to consider operating their vehicles on natural gas. The project will open up some new opportunities. It is a major step forward in providing an alternative energy source to industry in the TDZ and at Berrimah. I hope honourable members will join me in extending best wishes to AGL and NT Gas both for their commitment and for the benefits that will derive to the Northern Territory.
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Last updated: 09 Aug 2016