What Happens When a Gas Company Leaves a City?

The topic is oil and gas.

It's Thursday, June 11, 2026, at 4:56 am.

Les Palmer says stopping the gas supply would hurt his business.

Les Palmer is fixing food in his restaurant's kitchen.

He is overseeing the lunch service, which he has done for over 20 years.

Les Palmer has been in the hospitality business for 26 years.

His wife has been in the business for over 30 years.

The business has been their lives and careers.

Les Palmer is cooking steaks and chicken over flames.

During busy times, all 16 burners are used to feed hungry customers.

Gas powers all the activity in the kitchen.

Les Palmer says the kitchen uses a lot of gas.

There are many stove tops, a char grill, and a hot water system.

Without these, the business would not survive.

The business model is now under threat.

Les Palmer was shocked by the news.

About 40,000 people live in Albany, Western Australia.

The company that owns the gas pipelines is leaving town.

Customers have three years to switch to bottled gas or electricity.

The decision has affected the town and raised questions about who pays for the transition.

A report says Australians are using less gas, and governments need to plan for the decline.

The report says the process will be costly and chaotic if not managed.

The mayor of Albany says the town's experience is a warning for others.

He thinks people on gas networks should be aware of what's happening.

The energy minister says gas companies have a social responsibility.

The minister is disappointed with the company's decision.

The company says it will delay the decommissioning for a few months.

Les Palmer was shocked by the news and is worried about his business.

About 8,000 customers are connected to the gas network in Albany.

The network is 50 years old, and the company says it's too old to maintain.

Upgrading the network would cost $80 million, which is too expensive.

The company says it would add $10,000 to each customer's costs.

The spokesman says the required upgrades would make gas more expensive than bottled supplies.

The mayor questions what the company has done with the maintenance fees it collected.

He thinks the company should compensate the town for the transition costs.

The mayor says locals should not be left out of pocket.

There is a view that gas demand is declining in Australia.

The experience of another town, Esperance, shows the cost of getting off gas.

The town of Esperance lost its gas network a few years ago.

Customers who switched to electricity spent about $15,000 on average.

The bill was largely paid by taxpayers.

The energy minister says the situation in Albany is different.

The minister says the government is disappointed with the company's decision.

She thinks there's a strong case for the company to help pay for the transition costs.

The minister says the company should take responsibility for the network it purchased.

The company says it will contribute to the transition costs.

The minister warns that the challenge of transitioning away from gas will be difficult.

The transition will come with a big cost, and the state would prefer people to electrify their homes.

The minister says doing so will ultimately be cheaper.

The think tank Grattan says governments need to take control of the transition.

Grattan suggests policies to reduce demand, such as phasing out gas use in households.

The think tank notes that domestic gas demand has declined since 2020.

The trend will increase pressure on the electricity grid and cut demand on gas networks.

Grattan says Australia is over-investing in gas pipelines and under-investing in power infrastructure.

The think tank says governments have largely ignored the decline in gas demand.

As a result, new problems are emerging, such as rising gas bills and manufacturers closing.

The mayor of Albany says many businesses still rely on gas.

He argues that the up-front cost of electrifying every customer would outweigh the cost of replacing the pipes.

Billions of dollars have been invested in Australia's gas networks.

If the gas network cannot be salvaged, the mayor says locals should not have to pay for the costs.

Les Palmer says it may be possible for him to switch to bottled gas, but it would be costly.

He says electrifying his business is not a realistic option.

Les Palmer says the style of cooking he does would not be possible with electric appliances.

He says he could not afford the costs of electrifying his business.

Les Palmer says if people want him to go electric, that's fine, but he cannot afford it.

It's Thursday, June 11, 2026, at 4:56 am.

It's Thursday, June 11, 2026, at 4:58 am.

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