Presented by Robert Clark MP		www.robertclark.net

Sale of TPA for $1.024 billion finalises gas utility privatisations

The Victorian gas industry privatisation has been completed with the sale of the transmission pipeline company, Transmission Pipelines Australia (TPA) to American GPU Inc. for $1.025 billion.

The Premier, Mr Kennett, said that the energy reforms would lead to a further diversification of the State’s gas supplies, with the transmission network connected for the first time to the Cooper Basin, and a new link to the Otway Basin to be opened by the middle of the year.

TPA owns and maintains the State’s high-pressure gas transmission system and is responsible for transporting all Victorian natural gas supplies to 1.3 million households and 40,000 commercial and industrial users.

It is also responsible for identifying supply opportunities and building pipelines such as the Victoria–NSW interconnect and the new South West Pipeline from Port Campbell to Lara.

The sale brings the proceeds from the State’s energy reform program to $29.5 billion, comprising $23.2 billion from electricity and a total of $6.3 billion from the gas entities.

Previous sales have allowed the Government to reduce State debt from $33 billion to an estimated $6.1 billion, not including the TPA sale.

GPU is already a major investor in the Victorian energy industry, having purchased the Victorian high-voltage electricity transmission business, PowerNet, in October 1997.

TPA was formed in December 1997 when the State Government disaggregated the Gas Transmission Corporation and Gascor. The company is responsible for transporting about 200 petajoules of gas a year, owns assets of $563 million and has annual earnings of $79 million.

Gas safety and pipeline construction standards would continue to be monitored by the Office of Gas Safety and the Department of Natural Resources and Environment respectively. The Australian Competition and Consumer Commission regulates transmission pricing for both the electricity and gas networks.

(News Release, Office of the Premier, May 7, 1999)