Rural Affairs Minister Jaala Pulford has confirmed the rollout of natural gas to Invermay despite reports it had been cancelled.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
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 coalitions 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 in a statement.
"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 it 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, and said the money could be used for renewable energy projects.
