AGN to Invest A$580mn in South Oz Gas Network

Australian Gas Networks (AGN), part of the Australian Gas Infrastructure Group (AGIG), will invest A$580mn (US$403mn) in South Australia’s natural gas distribution network over the next five years, AGIG said on July 10.

The company will replace 860-km of gas piping and connect gas to 39,000 residential, business and industrial customers. AGN will also cut upfront price from July next year. “An upfront price cut of 7% from 1 July next year has been proposed for the 460,000 customers across South Australia’s natural gas distribution network,” the company said.

According to AGIG, with the price cut an average residential customer will save A$34/year. The price cut and new investment were announced recently by AGN in submitting its final plan to the Australian Energy Regulator for the South Australian gas distribution network for the 2021-22 to 2025-26 access arrangement period.

“A continued focus on renewable gas in the network is also a final plan priority. We are planning to blend renewable gas into our networks, with these low carbon initiatives being strongly supported by our customers,” AGIG’s CEO, Ben Wilson, said. “The network currently services the Adelaide metropolitan area, Mount Gambier, Port Pirie, Whyalla and the Riverland. We are also looking to extend the network to the rapidly expanding Mount Barker region of the Adelaide Hills.”

AGIG on July 9 started work on a renewable hydrogen production facility in Adelaide. Once operational, more than 700 residences in parts of the Adelaide suburb of Mitchell Park will start receiving the plant's blended 5% renewable gas. AGIG has already announced plans for a similar plant in Gladstone, Queensland.