METGASCO has announced to the market that due to “political developments” coal seam gas (CSG) exploration will recommence in the Northern Rivers region.
The company had halted exploration in the Richmond Valley over the last six months citing “major changes” to NSW’s regulatory and administrative procedures as prohibitive to business.
However, following the election of a new federal government and strong pro-CSG rhetoric from both federal and State Ministers, Metgasco says it now has the confidence to proceed.
Metgasco’s managing director Peter Henderson said “recent regulatory and political developments, particularly since the September federal election, have encouraged Metgasco to initiate the activities necessary to enable field operations to recommence".
“The new federal Minister (Ian Macfarlane) is to be congratulated for highlighting the critical need to develop the CSG industry in NSW to address the shortage and rising price of natural gas on the eastern seaboard of Australia and making it a personal top priority.”
Mr Macfarlane recently told a NSW energy security summit the State faces a looming gas supply shortage. He wants CSG to fill the gap as soon as possible.
“When the gas gets short in a year or so's time, probably very short by 2016, and it gets very expensive, it's going to be average mum and dads who will lose their jobs because we haven't acted fast enough,” he said at the summit.
Mr Macfarlane is committed to “harmonising” Commonwealth and State regulation to fast track the approvals process for major CSG projects and boost investor confidence in the resources sector.
