8 July, 2013
Export demand, not environmental regulation, is driving up the cost of gas
A new report by an independent think tank has exposed as totally misleading claims that regulation of the coal seam gas industry is driving up gas prices for NSW consumers.
The Australia Institute report Cooking up a gas price: Will CSG exports push up the price of gas? [1] found the forecast trebling of wholesale gas prices in eastern Australian was being driven by the start of gas exports from the huge LNG export plants being built in Gladstone, Queensland, and the linking of Australian gas prices to high Asian market prices.
“This report clearly demonstrates that environmental protection and opposition to CSG have nothing to do with these forecast price hikes,” said NSW Nature Conservation Council Campaigns Director Kate Smolski. “It is simply a function of linking the eastern Australian gas market to the world.
“Drilling for more gas, in NSW or elsewhere, will do nothing to keep prices down or secure gas for industry or households, because the more gas that is produced, the more the LNG export plants can be expanded to export it.”
Ms Smolski said the coal seam gas industry and NSW Energy Minister Chris Hartcher have been deliberately muddying the waters on the issue by blaming farmers, environmentalists and stricter controls around CSG development for the rises.
“The industry and Mr Hartcher know very well that such claims are untrue, but they have been more than happy to divert attention from the real cause of predicted price increase,” she said.
Ms Smolski said there was still much work to be done to regulate the expansion of the CSG industry to protect the state’s water resources, productive agricultural lands, wildlife and iconic landscapes.
“Drinking water catchments are still not protected from CSG and mining, neither are important natural assets like the Pilliga Forest, which is set to be carved up and polluted by CSG development,” she said.
"Before his election in 2011, Premier Barry O'Farrell gave a personal guarantee his government would ensure that mining could not occur in drinking water catchments. Mr O’Farrell has still not delivered.”
[1] https://www.tai.org.au/index.php?q=node%2F19&pubid=1182&act=display
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Coal and gas
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