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Thursday, 23 August 2012

Gas crunch in Australia


Minister warns of looming gas shortage in NSW
The NSW Government has warned of a looming gas shortage in this State that will see bills potentially triple in the next five years


ABC,
22 August, 2012

As protesters blockade a coal seam gas project at Fullerton Cove, north of Newcastle, it's been claimed there's an urgent need for new gas supplies.
Minister for Energy and Resources, Chris Hartcher, told 1233 ABC Newcastle's Jill Emberson we're heading towards a crisis.

"The contracts under which NSW is supplied gas start to run out in 2014 and they finally run out in 2017," he says.

"Now there's one million customers for gas in the State, tens of thousands of course in the Hunter Region, and one-third of our energy in this State, especially for business and industry, is gas.

"We certainly need to be addressing the gas supply crisis."

The Minister says it's been assumed we'd be able to access our own natural gas.

"We've got an estimated 250 years' supply running from north Queensland way down to south of Wollongong in a vast methane gas pool, natural gas," he says.

"We need to actually now start to allow the industry to move ahead so that it can access that vast reservoir and supply us with the gas that we're gonna need."

Mr Hartcher says we've previously obtained our gas supplies from coal, the Bass Strait and the Cooper Basin, but as well as the contracts running out the supplies themselves are dwindling.

"We do have this massive resource of coal seam gas and that's what we need to address and we need to address it urgently."

He says the government aims to have the gas pipeline developed into Newcastle.
"If we don't do that then simply it will all go to Gladstone as it gets developed and will all be exported overseas," he says.

"And we will have to buy back our own gas."

The Minister says this would send the cost not doubling but potentially tripling within the next five to seven years.

"People are already concerned about their electricity bills, they're not very concerned about their gas bills now but they certainly will be in two or three years' time if we don't develop a natural gas industry here in NSW," he says.

As for safety concerns over coal seam gas, Mr Hartcher says the government won't allow industry to proceed in any area where its activities pose a realistic threat to water, agriculture or the environment.

He says NSW can learn from the experiences and mistakes made with coal seam gas both in Queensland and overseas.

"We can develop a peaceful and successful co-existence between gas and agriculture and water," he says.

Chris Hartcher says the Fullerton Cove group has a right to peacefully protest.
"They do not have a right to impede people going about their legal business," he says.

"This company has valid and lawful consents to carry out the work it proposes to undertake."

Police have requested the protesters at Fullerton Cove move on, as they are blocking entrance to a private property where Dart Energy intends to sink two pilot coal seam gas wells.

But the group says the project is a threat to water supplies and wetlands, and are determined to prevent it proceeding.

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