News

Sunraysia powering ahead with natural gas

Mon, 11 Jan 2016 09:18:00

The Mildura Development Corporation is predicting the upgrade of the region’s natural gas supply will create important opportunities to strengthen the local economy.

The operating pressure of the natural gas supply line from Angaston (SA) to Mildura has been increased by almost 40 percent with the completion of work by the Australian Gas Networks (AGN), supported financially by the Victorian Government.
The MDC’s acting chief executive officer Jenny Garonne said the upgrade would also create exciting opportunities for growth, particularly in manufacturing.
“The need for an increase in capacity and therefore more reliable natural gas supply has been required for some time now,” Ms Garonne said.
“We have heard time and time again from developers and business operators how important connection to natural gas is,” she said.
“Access to natural gas lowers operational costs, improves environmental outcomes and increases business sustainability overall, but particularly for manufacturing.
“Because natural gas is such an important element in competitiveness, we know that many businesses only seriously consider establishing where they have access to it.”
Ms Garonne said because of the overall multiplier effect, expanding manufacturing created the highest positive impact on local regional gross product.
“The access to natural gas is a key element in us being able to attract new businesses and allow existing businesses to value-add, particularly in manufacturing,” she said.
“For example, there are a number of locally-based primary production-based businesses which run their manufacturing operations in the metropolitan area due partly to natural gas access.  There is now a real opportunity for them to look again at improving efficiency by establishing locally.”
The MDC acting chairman James Golsworthy said although the expansion had taken three years to complete, securing the project was an initiative MDC and Mildura Rural City Council had been working at for more than eight years with support and advocacy of local representatives.
“That included developing a business case and doing business surveys to assess power needs as well as countless briefings, advisory and lobbying work with the Government, AGN and other stakeholders,” Mr Golsworthy said.
“We have kept pushing simply because of the importance we think it has for our region’s long-term future,” he said.  “Furthermore the project attracted significant funding from the Victoria State Government which confirms its commitment to investment and growth of the region,” he said.
“Being able to attract industry creates jobs and brings investment into the region that adds value to many of our existing primary industries.  But the benefits of natural gas are more than that, because it is a cheaper energy source for households and it is an energy supply that is better for the environment.  It’s a win-win all round.”