Rural Affairs Minister and Ballarat MP Jaala Pulford made the confirmation on Wednesday.

While the $85 million contract signed by former Deputy Premier Peter Ryan is not popular with the Andrews government and was described as a “white elephant” of the Coalition’s making, Ms Pulford insisted it would go ahead. 

Invermay is one of 11 towns slated to receive the infrastructure boost. 

“The Andrews Labor government will proceed with the Energy for the Regions program,” Ms Pulford said. 

“A report in The Weekly Times today that the Labor government is poised to axe the Energy for the Regions program is incorrect.” 

Work has not begun, but there is uncertainty over the project because of the rise in gas prices reducing much of the benefit. 

Invermay Progress Association president Ian Martin said the group was unsure whether people would actually sign up for the gas supply if the project gets up. 

“What worries me is that they’ll put in this infrastructure and residents won’t take it up,” he said. 

“I’ve always thought it would be good economically, but people need to actually take it up.” 

Mr Martin also said there had been little engagement after Invermay advocates asked to be included in Energy for Regions before the 2010 state election. 

“One of the things that has been frustrating about all of this is that neither political party has spoken to us about it,” he said. 

According to Mr Martin, over $7 million has been allocated to the Invermay project, which would see compressed natural gas (CNG) trucked to stations outside the town and then piped to properties. 

He said the price rises in CNG would also make people reconsider their gas usage, and said the money could instead be used for renewable energy projects.