APPEA unhappy with NSW gas freeze

THE ROADHOUSE BOWSER: The Australian Petroleum Production & Exploration Association (APPEA) has slammed a recent announcement from the News South Wales Government signalling plans to extend its current freeze on natural gas exploration.

The State Government announcement comes hot on the heels of a Federal Government release of its draft Energy White Paper, which highlighted the need for an urgent uplift in NSW gas production.

Needless to say that particular announcement received a much warmer welcome from APPEA, which indicated it had been backed by business and manufacturing bodies, not only in NSW, but on a national scale.

“It also appears the announcement is set to be made just days 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,” APPEA said in its press release.

According to APPEA, NSW consumes around a quarter of the gas used in the eastern Australia gas market, yet the state supplies only about one per cent of the gas production for that market.

“The state’s 1.3 million gas customers rely on interstate producers for 95 per cent of their supply, despite the state possessing very significant reserves and experienced gas companies willing and able to produce local gas for local consumers,” APPEA said.

“NSW regulated gas prices are increasing by more than 10 per cent this year.

“New production depends upon successful exploration activity.

“And without new exploration and production in NSW, it will be very difficult to put downward pressure on NSW gas prices.”

 

 

Website: www.appea.com.au