Australian Financial Review: AGL ramps up CSG warnings

AGL Energy has dramatically stepped up its warnings about the risks of continued stalling in the development of coal seam gas in NSW, advising of “dire economic and social consequences” from gas shortages.

In a submission on the government’s eastern Australian gas market study, AGL pointed to “hugely disruptive impacts” from potential supply outages on peak-demand days when ­production cannot meet demand.

In a controversial move, AGL also for the first time suggested the government should consider subjecting new LNG export projects to a “national net-benefits test” to consider the impact on the domestic market of ­further gas exports.

“It would be prudent for the ­Commonwealth government to take steps to actively avoid the same ­situation arising in future as exists ­currently, whereby domestic ­customers are facing the prospect of gas supply shortages,” AGL said in the ­submission, to be lodged on Friday. MORE