State stumps up $10.8 million to help customers electrify as city’s gas network shuts down

Western Australia is to spend $10.8 million to help transition thousands of households and businesses to transition away from gas, following a decision to decommission a privately-owned gas distribution network in the Western Australian city of Albany.

Atco Australia, the local subsidiary of the Canadian Atco Group, advised the Western Australian government in January that it had decided to decommission the Albany Gas Distribution System, which supplies around 8,000 residential and business customers with liquified petroleum gas (LPG).

The network, which is made up of around 160 km of reticulated gas pipelines, was privatised in 2000 and bought by Atco in 2021. The state government said in January that, while the decision to decommission the network rests solely with Atco, it was working to support the network’s customers electrify or switch to bottled gas.

The decommissioning process is expected to be completed in stages over a three-year period and was deemed necessary after a review found many of the pipes making up the network were nearing their end-of-life and that the cost of replacing them was too high.

This week, the government announced it has approved $9 million as part of the upcoming state budget to transition social housing properties in the area to alternative energy sources. A further $1.8 million will support planning for the transition and evaluating options for the wider community.

A working group, consisting of local representatives from the city of more than 40,000 people, has been convened to assess the options available for customers who have been impacted by Atco’s decision.

The working group will provide guidance on the staging of decommissioning as well as what support customers will need to ensure a smooth transition. An initial workshop held earlier this year in Albany was attended by around 40 stakeholders, including local businesses, residents, energy providers, and government entities.

The state government and City of Albany have also secured a commitment from ATCO to defer the decommissioning of the town’s centre to the final phase of the process, ensuring local businesses have the time and space necessary to make decisions about their future energy needs.

“We know this change will have impacts for households and businesses across Albany, which is why we are bringing together local stakeholders, industry and government to plan carefully and collaboratively,” said Amber-Jade Sanderson, state minister for energy and decarbonisation.

“We are committed to making sure Albany continues to have reliable, affordable, and sustainable energy options into the future.”

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