AGL Suspends Sydney CSG Project

AGL Energy Limited (AGL) has decided to put on hold its Sydney coal seam gas project after strong protests from local community, the company said in a statement late last week.

The company has requested that the New South Wales Department of Planning & Infrastructure suspend its assessment of the proposed Northern Expansion of the Camden Gas Project. This includes postponing the PAC public hearing, currently scheduled for 25 February 2013.

Group General Manager Upstream Gas, Mike Moraza, said: "AGL understands that there are some members of the community who are concerned about the current proposal and we believe that this suspension will allow us to consider those community concerns."

The proposed Northern Expansion Project has the potential to contribute to the supply of natural gas to approximately 580,000 New South Wales households. It would reduce the reliance on gas supplies from interstate which will be required to alleviate future gas supply shortages.

The existing operations at Camden have been producing coal seam gas since 2001, and currently provide approximately five percent of the state’s natural gas needs, AGL said.