CSG industry says it has the answer to rising gas prices

THE national lobby group for coal seam gas is telling the Federal Government it has the solution to deal with possible energy shortages and price rises - drill more gas.

The gas market - particularly for those in New South Wales - is going to change as Australia begins exporting massive amounts of liquefied natural gas, converted from CSG, from plants in Gladstone.

The Federal Government is considering whether there needs to be an "intervention" to ensure some gas is kept for local consumption.

However, the Australian Petroleum Production and Exploration Association warns reserving any gas supplies would distort the market and jeopardise investment.

It wants governments to cut red tape "to allow more gas to flow to the market".

"Failing to allow gas producers to produce adequate supply will drive gas prices unnecessarily higher and hurt commercial, industrial and residential customers," said David Byers, chief executive of APPEA.

NSW has some of the country's strictest rules around gas development, while Queensland's gas fields in its south-west, though contentious, are being developed.

There are fears that gas supplies to NSW will become increasingly expensive if producers force local customers to pay the same price as international buyers.



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