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The $500 million SEA Gas project will see the construction of a 680km pipeline that will link offshore Otway Basin and Bass Strait gas fields in Victoria to Adelaide.
"Gas is scheduled to reach Adelaide in time to meet next summer's peak demand," said a spokesperson for SEA Gas. "Gas will probably be in the pipeline well before that, but at this stage it's not likely to be required before next January."
With 75% of the SA's state electricity system gas-fired and on hot days, incapable of generating sufficient energy to meet demand, the South Australian government is keeping a close eye on generators for fear they may take advantage of the tight supply situation to maximise profits.
South Australian Treasurer Kevin Foley said if any evidence is found of "unscrupulous" behaviour by electricity generators, the matter would be referred to the Australian Competition and Consumer Commission and the National Electricity Market Management Committee.