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Small Town Gas Costs Could Come Down

A solution to the high cost of bottled gas for small towns may be available, and the Nationals are calling on the State Government to fund a feasibility study to assess what is possible.

By Peter Hall - 28th August 2006 - Back to News

The Nationals’ Environment and Resources spokesman, Peter Hall, has called for Omeo in East Gippsland to be used as the model for the feasibility study, following the success of a stand-along reticulated LPG network at nearby Mount Hotham and Dinner Plain.

Mr Hall pointed out in Parliament this week that the system in use at Mount Hotham is more cost effective than bottled gas.

"While we in The Nationals strongly support extensions to the natural gas network, we realise the cost of such extensions to many small towns will make such extensions economically impossible," Mr Hall told Parliament.

"I know of at least two towns in Victoria that have found a solution that has a cost somewhere between the cost of bottled gas and reticulated natural gas.

"Both Dinner Plain and Mount Hotham have a stand-alone reticulated LPG network. LPG is reticulated from a central storage area and there are meters at the front gate which measure household use.

"Places just down the road from Dinner Plain and Mount Hotham, such as Omeo, continue to rely on expensive bottled gas. The Omeo community has spoken to me about this matter - it is keen to explore whether a reticulated LPG system would be feasible for their town, and if so what upfront and ongoing costs would be involved."

Mr Hall said there were many towns in country Victoria that do not have access to natural gas, relying on either bottled gas, electricity or wood for some of their heating and cooking.

"My request to the Minister for State and Regional Development is to ask his department to supply the funding required to arrange and undertake a feasibility study on setting up a reticulated LPG system for Omeo, including what it would cost.

"The outcome could be applied to towns in the Tambo Valley, such as Swifts Creek, Ensay and Bruthen, and to a number of other small towns around country Victoria, to produce indicative costs.

Mr Hall described the proposal as "a sensible measure."

Source: http://gippsland.com/

Published by: news@gippsland.com

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