The government of Australia’s New South Wales decided to release two remote areas for conventional gas exploration to deal with a potential gas supply shortage in the region.
Commenting on the NSW government’s decision, Malcolm Roberts, the Australian Petroleum Production & Exploration Association chief executive Malcolm Roberts said this is a signal that “developing local gas supply is essential for NSW industry and residential customers.”
Roberts adds that gas development in NSW has been suspended for three years leading to an unsustainable situation in which NSW is producing only three percent of its gas needs. This led to increased gas prices and tightening supply.
He urged the government to increase its efforts and establish the advisory body to assess land release immediately.
Earlier this year, Australia’s second-largest power and gas retailer AGL Energy, progressed the feasibility study for the LNG import terminal in the southeastern part of Australia.
AGL is considering a potential investment of up to $300 million to build a floating or onshore LNG import terminal to supply its retail markets in NSW, Victoria and South Australia.
The company expects to reach the final investment decision on the LNG import project by June 2018.