Decision on AGL's NSW CSG Project Next Year

Final decision on first phase development of AGL’s second coal seam gas project in NSW, at Gloucester north of Sydney is expected as soon as next year.

According to Brisbane Times, first stage of the Gloucester project involves drilling 110 wells, mostly on land held by coal miners such as Gloucester Coal and the privately held GRL, and would cost between $400 million and $500 million.

The project is forecast to produce 20 petajoules to 30 petajoules of gas annually, which would account for 15 per cent to 20 per cent of annual gas demand in NSW, Brisbane Times reported.

The gas will likely to be transported through a pipeline to Newcastle, about 100 kilometres south of Gloucester, where AGL is constructing a $300 million gas storage centre.

AGL is also proposing a stage two and stage three expansion of the Gloucester project, although the details are yet to be decided, the newspaper said.