just a matter of time now, page-9

WEDNESDAY, OCTOBER 17, 2012


By Rick Wilkinson APPEA Chief Operating Officer


The people of NSW need only look north to see the benefits of developing coal seam gas resources. In Queensland, CSG has brought in billions of dollars of investment and has created 18,000 new jobs. The industry is also upgrading roads and regional airports and paying millions in royalties and taxes. The CSG-rich region of Western Downs, 200km west of Brisbane, is thriving.

Last week, Western Downs Mayor Ray Brown told a CSG Conference his district has just 1.9 per cent unemployment and “even the dogs have jobs”. In just one month this year, his council received development applications worth $10.2 billion. Other towns, such as the gas export hub of Gladstone, are also thriving.Yet NSW - which also has rich CSG resources - has only 332 people employed in its CSG industry. While the Queensland industry has contributed $84 million to community projects, NSW CSG community contributions total just $550,000.And NSW is not only missing out on jobs, government revenue, and economic, regional and community development.It is also failing to ensure energy security.

In NSW, gas is an important fuel for power generation, industry operations, and household heating and cooking. The state's gas use is forecast to more than triple over the next 20 years.But almost all of the gas used in NSW is imported from other states.In 2014/2015, numerous long-term NSW gas contracts will begin to expire. With gas consumption growing across Australia and no significant new gas production in NSW, the next generation of NSW gas contracts will set prices much higher than those under the current contracts.

This would mean higher electricity prices and higher costs for businesses, which would pass these costs on to consumers.Yet ACIL Tasman has estimated that even with growing gas demand, if NSW develops its vast untapped CSG reserves it could become 77 per cent self-sufficient in natural gas.The last of the major long-term NSW gas contracts will expire in 2017. So the period from now until 2017 is a critical window for developing NSW CSG projects.

If you would like a copy of the PDF please email Chris Ward [email protected]


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