Albany Gas Network Decommissioning
ATCO Australia has announced its decision to decommission the Albany gas network, citing the excessive cost of necessary repairs. This process will take place over the next three years, commencing in the second half of this year. Approximately 8,000 businesses and homes currently using liquefied petroleum gas (LPG) from the network will transition to bottled gas.
Impact on Local Customers
Businesses like Les Palmer's steakhouse, which rely on network gas for appliances such as deep fryers, stove tops, ovens, and char grills, are researching alternatives. Concerns include the space required for bottled gas providers and the potentially significant cost of converting to electric appliances.
Reasons for Decommissioning
Russell Godsall, ATCO's executive general manager for gas operations, stated that upgrading the aging 160-kilometer network would necessitate replacing about 90% of it. The estimated cost for these upgrades exceeds $80 million. Godsall indicated that passing this expense on to Albany's 8,000 customers would lead to a substantial increase in their bills. ATCO acquired the network in 2012, which was privatized in 2000.
Government and Community Response
City of Albany Mayor Greg Stocks expressed disappointment regarding the lack of notice given to residents and characterized the situation as corporate entities potentially disengaging from regional Australia. He raised questions about who would cover the transition costs for the affected customers and stated his intention to discuss this with the Energy Minister.
Minister for Energy and Decarbonisation Amber-Jade Sanderson expressed disappointment with ATCO's decision and affirmed the government's commitment to supporting affected households and businesses in accessing reliable and sustainable energy supplies. Premier Roger Cook drew parallels to a similar situation in Esperance, where a reticulated system was shut down due to unfeasible investment, and reassured customers there would be no immediate impact.
Transition Plan
ATCO plans to collaborate with the LPG industry and the state government to develop a detailed decommissioning plan. Godsall noted that the Esperance transition involved significant electrification and some customers converting to LPG, requiring appliance conversions and pipework alterations. He expressed hope that the change in Albany would be less extensive, as it primarily involves shifting from piped LPG to bottled LPG.