NSW must rapidly move ahead with the development of its coal seam gas resources in light of the “looming gas shortage” should it continue on the current slow path, federal resources and energy minister Martin Ferguson said on Friday.
Mr Ferguson acknowledged the work done by NSW energy and resources minister Chris Hartcher in clearing the way for the development of the sector.
But he told the Australia Gas conference in Sydney that more needed to be done and key approvals put in place so CSG projects start to be developed.
“It is time for NSW to develop its CSG industry,” Mr Ferguson said.
NSW now imports about 95 per cent of its gas requirements from other states. But those contracts start to expire in 2014 and may not be renewed, particularly as more gas from the eastern states is shipped to Gladstone to supply the CSG-based liquefied natural gas projects.
The recent release of NSW’s strategic land use policy by the state government and the lifting of a moratorium on new petroleum exploration licences has triggered the resumption of CSG drilling plans by companies including Santos, Dart Energy and Metgasco. But new commercial production projects are still years away, leaving AGL Energy’s Camden CSG venture south of Sydney the state’s only local supply source.
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