The pipeline is the only supply source of natural gas to Tasmania. It passes under the Bass Strait from Longford in Victoria.

Tasmanian Gas Pipeline Pty Ltd and Hydro Tasmania have been in negotiations over future gas supply contracts. Their current agreement is set to expire at the end of 2017 and, while the Tasmanian Energy Security Taskforce recommended the agreements be finalised before June 2017, no resolution has been made. Hydro Tasmania has a ‘take or pay’ agreement with Tasmanian Gas Pipeline Pty Ltd, which expires late 2017.