Tasmania's biggest gas seller is considering a modest expansion of its pipeline network in the North, including a possible extension into East Launceston, Newstead and to the Country Club Tasmania, Tasgas chief executive officer, Phaedra Deckart, said.
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Network expansions in Westbury, Ulverstone, and other parts of the North West are also under consideration, she said.
"We haven't reached a final investment decision. We've been really having a good look at how we could expand the network between Newstead and East Launceston - it's one of those key gaps where the network sort of circumvents those two suburbs, and we know that there is demand for gas in that area," she said.
But the expansion plans are modest, and the main focus is encouraging more uptake from households and businesses living on the existing network, she said.
"If we can get enough customers onto the network in that area to justify looking at the economics of a broader network rollout, we will do that."
Speaking ahead of the 20th anniversary of the launch of the pipeline that brings gas from Victoria to Tasmania and the opening of the gas market on the island, Ms Deckart sought to portray an industry playing a big role in Australia's transition towards renewable energy.
"Tasgas supplies seventy large industrial customers across Tasmania and over 1000 commercial businesses, and those customers underpin the Tasmanian economy. It's critical for those industries that they have gas for their industrial processes," she said.
Independent energy consultant Marc White, agreed.
"There are some Tasmanian industries that don't have any options other than using natural gas," he said.
But he said Tasgas and other companies operating in the market have a difficult challenge ahead.
Only about 5 per cent of households and 2 per cent of businesses in the state are using gas, and small users are paying the highest bills in the country, according to the Tasmanian Economic Regulator.
But customers are set to feel more pain, Mr White, a principal at Goanna Energy consultancy, said.
Gas prices on the mainland shot up over the winter, and new contracts for Tasmanians will eventually reflect this, he said.
"In most cases, these users are facing very significant increases because the commodity cost [on the mainland] has increased significantly, and the price shock will hit on the first of January, major commercial gas contracts typically end on 31 December in the calendar year," he said.
One company that spoke on the condition of anonymity confirmed it was facing a 125 per cent contract price increase for its gas. Others are investigating using alternative fuel sources, such as biomass or pellets.
Craig Richman, owner of the Sebel Hotel in Launceston, said he recently decided to replace his gas oven with an electric appliance instead, although he will retain gas for stove-top cooking.
Swimming centres around the state are moving away from gas - the Launceston Aquatic Centre previously consumed some 14,000 gigajoules of gas per annum.
Ms Deckart acknowledged the price rises were coming.
"Those customers that are coming off contract are coming to market for gas supply at a time when market prices have increased. When the wholesale market price goes up, we buy from the wholesale market and we are exposed to that increase in the price in the same way that we are exposed to the cost of milk going up," she said.
Many of the industry's problems stemmed from various state and federal government policies that fostered uncertainty.
"We need to see more supply come to market and we know that energy policy in Australia has failed to provide clear consistent policy for 10-15 years," Ms Deckart said.
"We shouldn't be picking winners in saying that we don't need anything other than renewables. Renewables cannot supply consistent energy when the sun doesn't shine and when the wind doesn't blow," she said.
"We need to see bipartisan support for a clear energy policy that encourages gas as part of the energy transition and encourages producers to bring more gas to market."
Although she did not mention it, one example of a policy that hinders new gas production is the state's moratorium on fracking exploration until 2025.
Mr White called on the state government to release its draft gas strategy.
But with such high market prices on the mainland, Tasmanian gas customers will witness a further price shock this year as their contracts come up for renewal, he said.
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