This proposal will add to the gas supply crisis that New South Wales is facing as existing supply contracts roll off between 2014 and 2017.
This roll off of contracts will coincide with very substantial increases in demand for gas as LNG export projects come on line in Gladstone.
The absence of multiple new sources of supply in NSW will add to substantial upward pressure on gas and electricity prices in the state.
AGL has made significant investments in NSW, including in the Hunter region and Gloucester, to ensure security of gas supply for families and industry.
Last year AGL relinquished prime agricultural land used for viticulture from its exploration licence (PEL 267) in the Hunter region in response to community concerns. The Hunter remains a critical future source of gas for NSW.
AGL will be seeking an urgent meeting with the Premier and Deputy Premier to clarify the details of this proposal.
Natural gas production from coal seams in NSW remains a low impact and low risk industry. Natural gas from coal seams can be safely produced without harm to the environment or human health and can comfortably coexist with other land uses.
AGL is one of Australia's leading integrated renewable energy companies and is taking action toward creating a sustainable energy future for our investors, communities and customers. Drawing on 175 years of experience, AGL operates retail and merchant energy businesses, power generation assets and an upstream gas portfolio. AGL has one of Australia's largest retail energy and dual fuel customer bases. AGL has a diverse power generation portfolio including base, peaking and intermediate generation plants, spread across traditional thermal generation as well as renewable sources including hydro, wind, landfill gas and biomass. AGL is Australia's largest private owner and operator of renewable energy assets and is looking to further expand this position by exploring a suite of low emission and renewable energy generation development opportunities.