Many in NSW fear a looming gas supply shortage for the state, while industry proponents often lament the lack of co-operation and leadership from the Government. NSW Minister for Resources and Energy Anthony Roberts believes the NSW Gas Plan will ensure that both industry and government can work together to develop the state’s gas resources.
HOW DOES THE GOVERNMENT PLAN TO WORK WITH INDUSTRY TO DEVELOP THE UNCONVENTIONAL GAS INDUSTRY IN NSW?
The Government remains committed to the actions set out in the NSW Gas Plan, which we released in November 2014.
The NSW Gas Plan sets out a clear, strategic framework to deliver world’s best practice regulation of the gas industry, while securing vital gas supplies for the state.
Our Gas Plan demonstrates the NSW Government’s commitment to support the safe, sustainable development of a local gas industry, which balances the needs of the community, the economy and the environment.
Importantly, we are already delivering on the 17 Actions set out in the Gas Plan.
The Gas Plan addresses the concerns of the public and the needs of more than a million households, businesses and industries, which rely on an affordable and secure gas supply.
This framework gives us both a strong environmental and economic future on the back of best practice regulation and management of the energy sector.
WILL THE SUPREME COURT’S RULING THAT THE SUSPENSION OF METGASCO’S ROSELLA LICENCE WAS UNLAWFUL INFLUENCE THE GOVERNMENT’S NEW APPROACH?
The Government will continue to place a high level of importance on community consultation for resources projects.
The Government is reviewing the judgment handed down and legal advice on our options.
All the issues raised in Justice Button’s judgment will be given careful consideration.
WHILE A RECENT AEMO REPORT HAS ARGUED THAT AN EAST COAST GAS SHORTAGE IS UNLIKELY, INDUSTRY ESTIMATES HAVE DISPUTED THIS CLAIM. DOES THE GOVERNMENT BELIEVE THERE IS A LOOMING GAS SHORTAGE?
The latest AEMO Gas Statement of Opportunities makes it clear that the forecast fall in gas demand in New South Wales is largely made up of a decline in industrial demand in response to rising gas prices.
This is a clear signal that manufacturers and other businesses are suffering, as are those employed by them.
Supply and demand are not isolated. Supply constraints are causing rising prices which has led demand to fall. There may still be potential for gas shortfall; however, AEMO is now saying this is much less likely due to industrial wind-down.
To put downward pressure on energy prices we need the growth of viable gas projects. Hope is not a strategy.
WHAT WORK HAS THE GOVERNMENT UNDERTAKEN TO AID IN THE DEVELOPMENT OF AGL’S GLOUCESTER GAS PROJECT AND SANTOS’S NARRABRI GAS PROJECT?
The Government has granted these projects Strategic Energy Project status due to the amount of gas they could potentially supply to NSW.
SANTOS IS PROPOSING TO SUPPLY THE NSW MARKET WITH GAS FROM ITS NARRABRI GAS PROJECT VIA A NEW PIPELINE CONNECTION RUNNING SOUTH FROM THE PROJECT. HOW WILL THE GOVERNMENT SUPPORT THE DEVELOPMENT OF THIS PIECE OF INFRASTRUCTURE?
In December 2013 the NSW Government signed a Memorandum of Understanding with Santos in relation to timelines within which planning determination would be made.
This was to provide certainty of process, not certainty of outcome, as the project must still meet all relevant planning approvals.