ENERGY Minister Anthony Roberts will today extend a six-month freeze on new coal seam gas operations by another year, despite pressure from mining companies to open up the state’s gas market. The freeze on NSW petroleum exploration licence applications and petroleum special prospecting authority applications was expected to end tomorrow. The decision comes despite fears of price rises and gas shortages in the next few years. Mr Roberts, who has close links with anti-CSG activist and radio host Alan Jones, will extend the freeze until September 26 next year. The Minister, who oversaw an 11.2 per cent increase in gas bills this year, said the extension would allow the Office of Coal Seam Gas time to “complete its comprehensive examination of current PELAs”. Mr Roberts has refused to budge under pressure from gas companies who claim the state could experience critical shortages by 2016-17 “The former Labor government handed out 39 (PELs) in a clumsy fashion with little oversight. NSW deserved better,” Mr Roberts said. “The NSW Liberals and Nationals government has put in place the most comprehensive regulations for the CSG industry in the country. These regulations ensure that gas extraction from coal seams is done in a way that is safe and has minimal impacts on the environment and other industries. “The framework ensures companies involved in the gas industry meet the highest standards of technical expertise and financial capability to undertake exploration.” The Daily Telegraph understands the extended freeze may be motivated by politics, with the government keen to retain regional seats that have come under attack by the Greens and Labor. Despite NSW producing only 5 per cent of its own gas reserves, Mr Roberts has refused to budge under pressure from gas companies who claim the state could experience critical shortages by 2016-17. The Baird government has refused 10 petroleum exploration licences since March. “A number of companies have been asked to provide further information around environment, exploration and production reporting, community consultation and work programs,” he said. “Petroleum assessment leases will be available to companies with existing PELs or those who applied before the freeze. The NSW government is committed to increasing our domestic supply of gas and is working to ensure only safe and sustainable projects proceed.” The Santos and AGL CSG operations at Narrabri and Gloucester have the potential to produce more than 65 per cent of the state’s gas needs. A report by AGL said the CSG industry in NSW had the potential to unlock 16,000 jobs by 2035 and drive down the wholesale gas price by up to 12 per cent.
Posted on: Wed, 24 Sep 2014 22:58:11 +0000
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