AGL Confident of Meeting Half of NSW Gas Demand

AGL Energy is confident that it will be able to meets half of New South Wales’ gas demand if its coal seam gas projects in the state are approved. The company currently has three projects in the state.

Business Spectator, citing a news report in The Australian Financial Review, said that the approval may be not be certain given stiff opposition to the projects by environmental groups and some farmers.

Company’s three projects are the expansion of its Camden CSG project south of Sydney, the construction of its Gloucester project which, if approvals are received, would come on-stream in 2016 and the Hunter Valley project, though it requires three to five more years of exploration work. Together the three projects are expected to produce 80 petajoules of gas annually.

“Coal seam gas appears to hold the solution for future supply” for NSW, said AGL's head of upstream gas Mike Moraza, according to the newspaper.