Gas pipeline will kill CSG in NSW, Greens say
A GAS pipeline from the Northern Territory to New South Wales could spell the end of the NSW coal seam gas industry, according to Greens mining spokesman Jeremy Buckingham.
"No investor in their right mind would put one brass razoo into coal seam gas with the prospect of the pipeline being built. If it is built, CSG is dead (in NSW)," he said.
NSW Premier Mike Baird and NT Chief Minister Adam Giles signed a Memorandum of Understanding on Friday to build a pipeline connecting the NT with the eastern states.
Three possible routes have been identified: Alice Springs to Moomba (1100km), Tennant Creek to Mt Isa (620km); and midway between Alice Springs and Tennant Creek to the Carpentaria Gas Pipeline (700km).
It is expected the cost would be from $900 million to $1.3 billion, depending on the route.
Mr Baird said the project was all about ensuring a diversity of gas sources for NSW that would ultimately benefit residential and business consumers.
He also said NSW was not turning its back on the local gas industry.
The NSW Government is expected to outline its policy response to Chief Scientist Mary O'Kane's recent report into the NSW gas industry in coming weeks.
But the national director of oil and gas at Deloitte, Geoffrey Cann, told AAP that the announcement looked like the NSW Government had buckled to pressure from the anti-CSG lobby.
"To move all that gas from such a long distance away when you're sitting on your own pile of it doesn't make a lot of economic sense really," he said.
Lock The Gate chairman Simon Clough said more information was needed to determine what effect the pipeline would have on the NSW gas industry.
"The impact on Santos and AGL's unconventional gas activities (in NSW) is completely unclear," he said.
"We may be looking at shale gas coming from Central Australia, which is a huge issue affecting areas around Alice Springs, some of the driest country in the world.
"There are huge environmental issues.
"It also links (the eastern states) with the export facility in Darwin, which gives gas producers more flexibility."