Origin gas purchase shows NSW gas ‘shortage’ is overblown

MEDIA RELEASE – 20 September 2013

The Greens NSW spokesperson on mining Jeremy Buckingham said today that the agreement by BHP and Exxon to supply over 432 petajoules of gas from Bass Strait to Origin Energy for use in NSW showed that the assertion of a gas supply crisis was overblown. Mr Buckingham has put a proposal to the Australian Greens National Conference in November for the party to support a domestic gas reservation policy for the east coast gas network.

Dish Texas gas wells from above

“This deal shows there is plenty of convention gas to supply domestic demand and that the proposition of a gas supply crisis is an artificial construct created by LNG exporters to justify and to scare people into allowing the massive expansion of coal seam gas in NSW,” said Greens MP Jeremy Buckingham.

“The Australian Government should put the national interest before the profits of gas exporters and reserve a proportion of conventional gas to supply domestic manufacturers and residential customers.

“The so-called gas supply crisis is entirely created by the rush to export LNG from Gladstone on the back of a massive expansion of coal seam gas. Agricultural land, water resources and communities in NSW should not have coal seam gas imposed on them under the guise of a supply crisis, just to bail out these gas companies that have failed to secure enough gas to feed their export terminals.

“If the Abbott Government allows the gas exporters to suck all the gas out of the domestic market, then domestic gas customers will pay the price. Thousands of value-adding manufacturing jobs and economic activity will be put at risk because of an unregulated market failure.

“The sensible reservation of some conventional gas for manufacturing and residential customers should be considered as a far better alternative than letting coal seam gas rip across the landscape and through our precious aquifers,” he said.

Contact: Max Phillips – 9230 2202 or 0419 444 916

 

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