New South Wales Approves AGL's Waukivory CSG Pilot

AGL Energy Limited (AGL) on Wednesday said it welcomes the New South Wales Government’s approval of its exploration pilot program to flow test coal seam gas at Gloucester.

The company said it has received approval from the Office of Coal Seam Gas for the Waukivory Pilot and the Environment Protection Licence from the Environment Protection Authority.

The approvals mean AGL can now commence the Waukivory Pilot to fracture stimulate and flow test four existing gas wells that are located within the Stage 1 area of the Gloucester Gas Project.

“We welcome these approvals from the NSW Government. At present NSW produces less than five percent of its own gas and imports the rest from interstate. However if the Gloucester Gas Project proceeds, we have the potential to bolster that locally produced gas figure to around 20 percent,” said Managing Director and CEO, Michael Fraser.

Stage 1 has already been through a full environmental assessment and received approval from the independent NSW Planning Assessment Commission. That approval was upheld by the Land and Environment Court. Stage 1 is also the subject of Commonwealth approval, AGL said.

“All of the natural gas produced from the Gloucester Gas Project is for NSW customers and will not be exported,” said Fraser.

The Gloucester Gas Project is located near Stratford, approximately 100 kilometres north of Newcastle within Petroleum Exploration Lease 285 (PEL285). The project is wholly owned and operated by AGL.