600 jobs in $850m Hunter gas project

AN $850 million gas pipeline from Queensland to the Hunter has been approved by the NSW Government, paving the way for increased competition in the energy market.The pipeline is expected to become operational in 2012-13 and create up to 600 jobs during construction and 25 permanent jobs on completion.Queensland Hunter Gas Pipeline managing director Garbis Simonian said the approval could not have come at a better time."We have a serious situation at the moment in the supply of gas," he said."The existing Moomba pipeline [from South Australia] and the Eastern gas pipeline [from Victoria] are full. If you want to develop new industry and want gas to build a gas-fired power station the situation is there's no capacity."This will not only bring competition it will bring capacity."The other thing that's happened is the transmission price for gas has tripled from 75 cents to $2.25. We need more competition." NSW Planning Minister Kristina Keneally signed off on the NSW component of the pipe this week and Queensland and federal authorities are understood to have already given approval.The pipeline was expected to supply a new $750 million baseload power station near Muswellbrook, but the private company which planned to build it, the Queensland Gas Company scrapped those plans last month.Pipeline general manager Bob Otjen said at the time that the company had been in talks with other potential customers and it would not harm the pipeline's future.Minister for the Hunter Jodi McKay said yesterday the pipeline would undoubtedly help provide residents with reliable and constant supply.The pipeline is the third major Hunter project Ms Keneally has approved in the past two weeks, following the Huntlee New Town development and rezoning of employment land at Williamtown.Ms Keneally said she was confident of the gas pipeline's environmental credentials."The proponent was able to comprehensively address environmental impacts."It got through a rigorous environmental assessment so I have approved the project."Mr Simonian said the gas pipeline also opened up other opportunities."The pipeline has the potential to enable the development of a NSW coal seam methane gas industry and provide gas for use in the Hunter Valley and Sydney regions as well as rural NSW," he said.