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Industry, government share blame for NSW quagmire

BOTH industry and government share the blame for the quagmire that has become New South Wales' CS...

Anthony Barich
Industry, government share blame for NSW quagmire

That seems to be the message from the newly badged Australian Pipelines and Gas Association at what was a fiery Australia Domestic Gas Outlook conference in Sydney yesterday.

APGA CEO Cheryl Cartwright backed NSW Minister for Resources and Energy Anthony Roberts’ comments at the conference yesterday that the E&P industry must “step up” its advocacy of the benefits of natural gas so the state can secure longer-term access to gas.

As the March 28 state election heated up this week, Roberts accused Opposition leader Luke Foley of “pandering to inner-city greens” in his CSG stance laid out last week that included banning Santos’ $2 billion Pilliga project.

Roberts conceded that the public’s concerns about the CSG industry’s impact on the environment were justified as there was real environmental risks associated with it, yet said Foley’s policy had no base in science.

"The industry cannot pretend that these risks don't exist," Roberts told the conference in Sydney yesterday.

"More needs to be done in explaining to the public the world-leading technology and processes we have in Australia to address these risks."

Industry has been at loggerheads with the government over the state’s policies which have given it a horrendous investment risk perception, but Cartwright said it was “vital that the gas industry backs Government in this important debate”

“The industry has the science and experience and the government has regulatory systems to effectively manage gas development in NSW in a manner that recognises community concern and mitigates the risks,” Cartwright said.

“Just as there are road rules to mitigate risks associated with driving, there are rules and processes the government and industry can put in place to manage resource developments, including gas development in NSW.”

However, the AGPA also agrees with the need for government to make decisions “based on science rather than emotion”

“The debate on NSW gas development has become emotional. Decisions need to be based on scientific advice and then communicated effectively to the community,” Cartwright said.

“The community has genuine concerns that should not be dismissed,” she said.

The NSW chief scientist has advised in her September 2014 Independent Review of CSG Activities in NSW that the technical challenges and risks posed by the CSG industry could be managed with appropriate government regulation and high standards of ondustry professionalism.

Former Commonwealth resources minister Martin Ferguson, a Labor man, has appeared in NSW Liberal Party advertising speaking against NSW Labor’s stance.

Speaking as a non-executive director of BG Group, the first company to start LNG exports from Queensland, Ferguson told the conference yesterday that Foley’s threat to kill the Santos Pilliga project would send “a very clear message that he does not care about jobs or energy security”, toeing the mantra of the Australian Petroleum Production and Exploration Association.

“Here we have the leader of a mainstream party believing that he will win so many votes from this stance that he is willing to jeopardise the state’s energy security to get them,” Ferguson said.

“Labor’s poor record regulating this industry speaks for itself.”

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