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APPEA: NSW natural gas freeze is ‘extraordinary’

World Coal,

The Australian Petroleum Production & Exploration Association (APPEA) has said that it finds the timing and content of reports that the NSW government plans to extend its freeze on CSG exploration ‘extraordinary’.

Energy White Paper

The announcement comes after the Australian government released its draft Energy White Paper that specifically noted the need for an urgent uplift in NSW gas production. This call has been backed by a wide coalition of business and manufacturing bodies in NSW and across the rest of Australia.

It also appears the announcement is to be made ahead of the NSW Chief Scientist’s report into the science of gas development in NSW, sending a message to industry and third parties that such policy announcements are made independent of scientific consideration.

NSW consumes approximately a quarter of the gas used in the eastern Australia gas market, however supplies only 1% of the gas production for that market.

Considerable gas reserves

The state’s 1.3 million gas customers rely on interstate producers for 95% of their supply, despite NSW possessing considerable reserves and experienced gas companies willing and able to produce local gas for local consumers.

NSW regulated gas prices are increasing by more than 10% this year.

New production depends upon successful exploration activity. Without new exploration and production in NSW, it will be very difficult to put downward pressure on NSW gas prices.

Adapted from press release by Katie Woodward

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