Gas Week

EWN Publishing

Multinet proposal to supply natural gas to towns in South Gippsland, Vic: $54.7m cost

Posted by gasweek on 2 October, 2007

A Multinet proposal related to providing natural gas to a group of regional towns in the South Gippsland area, including Lang Lang, Korumburra, Leongatha, Inverloch, and Wonthaggi, noted an Essential Services Commission statement (18/7/2007).

Costs and customer information: Multinet indicated that its proposal was based on the following assumptions:

  • Five towns will be reticulated with natural gas.
  • The combined cost of the project will be $54.7 million (real 2005$).
  • The overall capital cost of the project will be $45.4 million (real 2005$).
  • The overall operating and maintenance cost of the project will be $9.3 million (real 2005$).
  • Upfront capital funding support from government of $20.4 million (real 2005$) was required.
  • A marketing/customer connection subsidy is provided by government.
  • The expected number of tariff V customers to be reticulated with natural gas was 5,918.
  • The expected number of tariff D customers to be reticulated with natural gas was 1.
  • The Victorian Government supported a natural gas DUoS tariff regime for the Extension Project that included a Tariff V and Tariff D premium of $3.30/GJ (indexed at CPI), and 25 per cent respectively in addition to the 2005 Reference Tariffs approved under the Multinet Access Arrangement (MAA) for tariff customers.

Feasibility test: Multinet concluded that the project would be economic in accordance with the requirements of the economic feasibility test contained in section 8.16 of the Code. Multinet proposed that a NFI of $22.2 million (real 2005$) be rolled into its Victorian RAB on 1 January 2008 as part of the formal Access Arrangement Review process (i.e. GAAR 2007).

Reference: Application by Multinet for Approval of New Facilities Investment to Provide Reticulated Natural Gas to Lang Lang, Korumburra, Leongatha, Inverloch and Wonthaggi. Multinet South Gippsland Gas Extension – Final Decision, 18 July 2007. Contact: Essential Services Commission, Level 2, 35 Spring Street, Melbourne Vic 3000, Australia. Phone: 61 3 9651 0222. Email: reception@esc.vic.gov.au
http://www.esc.vic.gov.au

Erisk Net, 18/7/2007

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
%d bloggers like this: