North coast Coal Seam Gas is dead: Metgasco Licence buyback costs $25 million

North coast Coal Seam Gas is dead: Licence buyback costs $25 million

December 15, 2015 12:00am
EXCLUSIVE Geoff Chambers
The Daily Telegraph

COAL seam gas mining on the state’s north coast will be shelved if Metgasco shareholders approve plans to sell the company’s three licences for $25 million in Sydney tomorrow.

The NSW government has prioritised the Narrabri and Gloucester CSG sites, isolating Metgasco’s capacity to progress with its licences.
A letter sent by Industry Department secretary Simon Smith to Metgasco revealed the intent of the government to focus on sites outside of the north coast.
The Narrabri and Gloucester sites — run by Santos and AGL — have the potential to provide up to 65 per cent of gas for NSW, which would help drive down household prices.
“The selected strategic energy projects are in Gloucester and Narrabri, where community support and market access are favourable. The Northern Rivers will not be part of this process,” Mr Smith told Metgasco managing director Peter Henderson.
Mr Smith said gas development in the Northern Rivers “does not (and is not expected to meet) strategic release criteria for the foreseeable future”.