“AGL is committed to supplying the people of NSW with energy from natural coal seam gas and this pipeline will help ensure a reliable, steady source of gas for the state,” AGL commercial development in upstream gas general manager Paul Ashby said on Thursday.

“It is cheaper to deliver gas to NSW customers from NSW projects than import gas from interstate because transport and infrastructure costs are lower.”

While federal and state approvals are in, AGL said access and compensation agreements for only “a handful” of properties were outstanding.

The pipe laying is expected to start in early 2015 along the route between Stratford and AGL’s Newcastle gas storage facility, which is under construction at Tomago.

NSW gas prices are widely expected to climb as the various LNG exporting projects in Queensland start up over the next several years.