April 2, 2016
After all the heartache, trenchant opposition from local communities and a towering $1.8 billion in write-downs, AGL has jettisoned its coal seam gas program. Santos will likely to follow suit and walk away from its controversial Pilliga project.
It makes no sense after all. Like Gloucester, Pilliga gas is high-cost to produce and environmentally high-risk to extract.
Unsurprisingly, the exit of AGL has lent fresh oxygen to the spurious “gas shortage” argument run by the gas lobby. Memo to APPEA, the public relations machine of the oil and gas industry: NSW has always “imported” its gas from interstate. That is why they have things called pipes.
It was scaremongering from this very same lobby, and from AGL, spruiking their “gas supply cliff” thesis two years ago, which helped producers to whisk through 17 per cent retail price rises at the cusp of the biggest crash in global oil and gas prices in decades.