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ADELAIDE-based gas pipeline network owner Envestra expects an emissions trading scheme would cost the company $6 million a year.
That cost would be passed onto consumers, managing director Ian Little told shareholders at the companny’s annual meeting in Adelaide today.
The proposed Federal Government’s carbon pollution reduction scheme would which priced carbon dioxide at $10 a tonne would “ultimately be recovered by consumers at about $6 a householder per year”, Mr Little said.
Envestra estimates carbon dioxide leakage from its networks to be about 627,000 tonnes a year which was “quite small” relative to emissions from coal fired electricity generation.
“There is no doubt that natrual gas will play a pivotal role in addressing Australia’s greenhouse gas reduction target … Envestra is well placed to benefit from its position as Australia’s largest distributor of this environmentally friendly fuel,” Mr Little said.
He said the company had reduced and refinanced short-term debt, added a further 23,500 consumers to its networks to a total of 1.04 million customers.
It also spent $113 million on improving and expanding gas supplies and constructed a spur-line on the Palm Valley pipeline to supply gas to a new power station in Alice Springs.
The company now operates more than 20,000km of gas mains.
Looking ahead, Mr Little expected shareholders to achieve long-term pre-tax returns of at least 10 per cent.
While Envestra shares had dropped in line with the overall sharemarket in the past year, Mr Little expected stronger market support this year.
Shares were trading almost 2 per cent higher today at 54c up from an April price of 34c.