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Gas

AGL concerned over CSG changes in NSW

Gas shortage predicted by csg decision 16000646 800496705 0 0 7025100 300

One of Australia's most prominent gas suppliers has responded to the New South Wales government's ban on coal seam gas (CSG) projects near residential areas.

AGL criticised the move, saying that it will only add to a shortage that is currently being felt across the state, as existing supply contracts expire between 2014 and 2017.

The ban will only apply to any CSG proposals that have not yet been approved by environmental legislation, SBS reports.

The company said that the conclusion of the deals will occur simultaneously with a surge in demand for gas, as liquefied natural gas (LNG) export projects begin in Gladstone.

Electricity prices and gas prices will soar as sources of gas in the state have been diminished by this government decision, AGL explained.

Gloucester and the Hunter regional are all areas where the company has heavily invested to ensure a supply of gas for constituents is maintained.

The company said it even went as far as giving back Hunter land for the purposes of winemaking - land which was held under AGL's exploration license.

That move was in response to community concerns.

Premier Barry O'Farrell and his deputy will be sought out by AGL for a meeting to discuss the finer details of the changes.

Posted by Callum Fleming