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Here is my take on it, I am not a licensed gas fitter.
The larger diameter line is to avoid flow/pressure loss over longer distance, not sure what pressure your natural gas is out there but prob between 3/4-3 psi. Like with air lines a smaller fitting can be tolerated at the end.
You will need to know what pressure you are starting with and BTU of the heater to determine if the 3/4" dia line for 6' will carry enough flow or require changing up. Your neighbour should be able to determine this.
All the gas furnaces and water heaters I have seen have a trap in front of the unit, likely code requirement.
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