This proposal will add to the gas supply crisis that New South Wales is facing as existing supply contracts roll off between 2014 and 2017.
This roll off of contracts will coincide with very substantial increases in demand for gas as LNG export projects come on line in Gladstone.
The absence of multiple new sources of supply in NSW will add to substantial upward pressure on gas and electricity prices in the state.
AGL has made significant investments in NSW, including in the Hunter region and Gloucester, to ensure security of gas supply for families and industry.
Last year AGL relinquished prime agricultural land used for viticulture from its exploration licence (PEL 267) in the Hunter region in response to community concerns. The Hunter remains a critical future source of gas for NSW.
AGL will be seeking an urgent meeting with the Premier and Deputy Premier to clarify the details of this proposal.
Natural gas production from coal seams in NSW remains a low impact and low risk industry. Natural gas from coal seams can be safely produced without harm to the environment or human health and can comfortably coexist with other land uses.
WCL Price at posting:
33.0¢ Sentiment: None Disclosure: Held
