AGL Energy Limited (AGL) has sold back to the NSW Government a licence to explore for gas on the Central Coast.
This week AGL took advantage of the NSW Government’s petroleum exploration licence (PEL) voluntarily buy-back scheme – announced as part of the NSW Gas Plan – and has sold PEL 5 which covered an area of 398 km2 from Wyong to Morisset.
AGL made the decision to sell PEL 5 back to the NSW Government after it was deemed not to be commercially viable.
"The majority of the surface area is covered by lakes and mining leases leaving only 10 per cent of the PEL area available for exploration," said Scott Thomas, Acting Group General Manager Upstream Gas.
"AGL’s current geological understanding of PEL 5 indicates that the technical elements required for a successful gas project are not present in the available area.
"AGL has a fully operational gas plant in Camden, and approvals for exploration and production of coal seam gas in Gloucester. We will concentrate on delivering value from these assets for our shareholders and for residents of NSW."
AGL is one of Australia's leading integrated energy companies and is the largest ASX listed owner, operator and developer of renewable energy generation in the country. Drawing on over 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 taking action toward creating a sustainable energy future for investors, communities and customers.