The NSW Legislative Council General Purpose Standing Committee No 5 has rejected calls for a moratorium on coal seam gas exploration after there were concerns it might pollute drinking water in the state. The report by the committee did make a number other recommendations though, in particular, it said that there should be a domestic gas reservation policy in place which might bar companies from selling gas outside of the state.
Santos has stated that, “Reservation policies are ineffective and counter-productive. NSW has abundant resources of CSG which confirms there should be no shortage of gas for NSW households and businesses, provided they are developed in a timely manner.”
According to the report, ‘Gas plays an important role in meeting energy needs in New South Wales, and demand is projected to triple in the next twenty years. Given that New South Wales is reliant on depleting gas supplies from interstate, the Committee considers that New South Wales must develop its own coal seam gas reserves if it is to enhance its energy security and contain gas price increases.’
Written by Peter Farrell.
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