NSW is the only mainland state in Australia without a significant natural gas industry.
Santos Vice President Eastern Australia, James Baulderstone, writing in The Australian this week said unless NSW can quickly secure future supplies of natural gas by 2016 or shortly thereafter, many businesses, in particular large industrial customers could face difficult decisions about their ongoing viability due to high gas prices or limited supply.
“Families will not be immune and will begin to notice as prices steadily affect their household gas bills,” he warned.
“NSW has historically imported more than 95 per cent of its gas supplies from the Gippsland Basin in Victoria, from the Cooper Basin in the northwest and from Queensland’s coal seam gas fields – supporting the development of industry in this state and underpinning thousands of jobs in the manufacturing sector.”
“Over the next few years, amid the start-up of Queensland’s three LNG projects and growing energy demands across the country, NSW’s traditional suppliers of gas will be focused on meeting their own changing needs.”
Mr Baulderstone said confidence for communities and investors can be restored with proper and good faith talks.
“The future prosperity of this state depends on all of us working together to achieve this outcome.”