The subsea and underground pipeline will link Esso/BHP's Gippsland gasfields across Bass Strait to the Bell Bay power station on the Tamar river south of Launceston.
Following the arrival of gas in the state to serve about six major customers, the next step will be reticulation of gas throughout the island, Mr Bacon said.
At the launch of the event, DEI president and chief executive officer Richard McGee also announced the start of construction of the VicHub project, which will enable gas to flow freely between Victoria, New South Wales and Tasmania, through the construction of a link between the Eastern Gas Pipeline, Tasmanian Gas Pipeline and the GasNet pipeline system.
No costing was given for what would be the nation's second major gas hub, although Duke officials said it would be in the low millions of dollars. "VicHub is an exciting project in the Australian energy industry as it offers new and existing gas retailers greater diversity of supply, while providing an effective gas trading platform," Mr McGee said.
Gas and electricity rivals Origin Energy and TXU Australia have joined forces to develop a high pressure pipeline between Victoria and Adelaide. The deal ends months of feuding between Origin and TXU over plans for a gas pipeline into South Australia.
Origin initially planned the $340 million South East Australia Gas project amid claims by TXU and others that the proposed 355 millimetre diameter pipe would only carry 70 petajoules of gas, or enough to meet Origin's requirements.
It is understood under the Origin/TXU deal is believed to accommodate TXU's desire for a larger capacity pipeline, likely to be 407 millimetres or larger.
