Questions Upon Notice Gas Supply Contract

Ms Armitage asked the Acting Leader of Government Business in the Legislative Council -

With regard to Tasmania's gas supply contract -

(1) What is the situation with regard to the renegotiation of the contract?

(2) Can the Government confirm that Hydro Tasmania proposes to use liquefied natural gas -LNG - in the Tamar Valley Power Station?

(3) (a) Will construction of any new infrastructure be required - for example, new tanks?

(b) If so, what are the estimated costs of these upgrades?

(4) Does the Government consider that domestic and commercial natural gas users in Tasmania will be negatively affected in any way should the contract not be renegotiated?

Mrs Hiscutt replied -

(1) The Government has made clear to both Hydro Tasmania and the pipeline owner its expectation that they engage in good faith commercial negotiations to secure a fair outcome as soon as possible. In the event that the parties are not able to reach a fair outcome, new rules are in place that allow an arbitration process to be utilised.

(2) Hydro Tasmania does not propose to use LNG at the Tamar Valley Power Station.

(3) Not applicable.

(4) The Government is confident that a fair outcome for Tasmanian gas users will be secured either through commercial negotiation or an arbitrated outcome.

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