Halting coal-seam projects could increase gas prices
The Australian Petroleum Production and Exploration Association (APPEA) believes that gas prices will rise unless New South Wales commercialises its natural gas resources.
APPEA has made its submission to the NSW Legislative Council Coal Seam Gas (CSG) Inquiry in the hope that it will open up further development of the state's energy capacity.
The submission has been based on a report compiled by ACIL Tasman, as commissioned by the APPEA.
According to the findings: "Wholesale gas prices across NSW, Victoria, South Australia and Tasmania will rise between 20 and 25 per cent - in real terms - by 2030."
They also believes that electricity prices will jump 7.4 per cent between 2020 and 2030.
Rick Wilkinson, APPEA's chief operating officer or eastern Australia, says: "This report shows CSG can be an economic and environmental game-changer for NSW.
"A strong CSG industry makes it possible for NSW to meet growing energy demand while maintaining economic growth and incorporating a strategy to curb greenhouse gas emissions."
Coal seam gas has been viewed by many as a viable means to meet future energy demand as Australia's population grows in the coming decades.
By Callum Fleming