To promote the standard development of the Coal Seam Gas (CSG) industry, NSW State Government Australia has plans for implementing new strategic framework to reset and restart the development process of the state’s Coal Seam Gas (CSG) industry.
The NSW Minister for Industry, Resources and Energy, Anthony Roberts pointed out that they will continue to freeze the new Coal Seam Gas exploration and evaluation before the introduction of the new strategic framework, and legislation will extinguish 16 previous applications.
Moreover, the entire system for Petroleum Exploration Licences (PELs) will be rese as wellt, with the NSW Government deciding which areas will be released for exploration and to whom.
Robert also stated that the new strategic framework will adopt all of the recommendations in Chief Scientist Mary Okane’s final report. Such as, designating areas for CSG extraction, ensuring high standards of engineering and professionalism in CSG companies, creating a state environment data repository, comprehensive monitoring of CSG operations with ongoing scrutiny of collected data, a well-trained and qualified workforce and applying new technologies as measures to corral the CSG industry. Meanwhile, the NSW Government needs to listen to the concerns of the community, industry and independents industry experts in the CSG field.
In general, with the right regulation, engineering solutions and ongoing management, the risk of gas development can be effectively managed. The NSW Government’s Gas Plan explained how they will thrive to deliver best practice regulation, increase natural gas supplies while lowering natural gas prices for the State’s households and business.
The NSW Environment Protection Authority (EPA) will be the Government’s lead agency for CSG, taking over all environmental compliance and enforcement matters.
Australia’s oil and gas industry has welcomed the forthcoming State’s new plan. The Australian Petroleum Production & Exploration Association (APPEA) said that the introduction of the new scheme may increase NSW’s natural gas supply while reducing safety issues. APPEA also believes that unnecessary restrictions and red tape placed on explorers and producers will hinder resource development and hamper new investment opportunities.
APPEA has called on the government to further clarify the new policy stance, as the current policy does not allow for new exploration activities. In addition, insiders suggested that gas production would be reserved for use in New South Wales, because the state has relied on other states for gas supplies for the past few decades.
APPEA has also requested the new plan to clarify farmer compensation agreements, saying that they must not reduce the scope for flexible negotiation between parties, as well as the extension of exclusion zones. Additional legislation costs for investors, such as compensation agreement, community contributions or compliance, must be effectively controlled to ensure costs are not so high as to jeopardize the investment enthusiasm.
Australian Pipeline Industry Association (APIA) CEO Cheryl Cartwright said that, although the new plan is highly anticipated, investors needed firm timelines and to eliminate the current negative sentiment towards new investment in gas exploration, development and production in NSW. Cartwright does not agree with the moves to reserve gas for the state.
“Reserving gas for any particular state does not solve supply issues. Australia has abundant supplies of gas so it makes sense to encourage more gas development and increase the number of gas supplies in the market. The APIA would also welcome policies that encourage increased competition through greater participation in gas supply.” Cartwright said.