After investing $47 million in Albany’s liquefied petroleum gas (LPG) network over the past 15 years, ATCO has announced the decommissioning of the system due to its unsustainability. The company faces an additional $80 million cost to replace the aging infrastructure, which has only generated $37 million in supply charges since ATCO took over in 2011. Many consumers have opted for bottled LPG instead of the pipeline system, with only 40% of Albany connected to the network. ATCO plans to assist customers in transitioning to bottled gas and has delayed the decommissioning process until early 2027. The decision comes after the State Government’s failure to fulfill a promise to extend the Dampier to Bunbury natural gas pipeline to Albany, which would have provided a more reliable gas supply.
Why It Matters
The decommissioning of the Albany LPG network highlights the challenges of maintaining outdated infrastructure in regional areas. With rising costs for consumers, ATCO’s decision reflects a shift in energy consumption preferences, as many large users have already transitioned to alternative gas sources. The lack of support from the State Government for regional gas supply further complicates the situation, as there are no subsidies for LPG in regional areas like there are for electricity. This situation underscores the difficulties faced by utility companies in adapting to changing market demands and infrastructure needs.
Want More Context? 🔎
