A report on the Narrabri Gas Project released this week by the Institute of Energy Economics and Financial Analysis is fundamentally flawed.

The report claims that gas production from the proposed Project may have little or no influence in driving lower wholesale gas prices in NSW.

The Narrabri Gas Project will deliver gas where market forces of supply and demand will drive the price.

The fundamentals of basic economics clearly dictate that more supply will put downward pressure on the price.

The report incorrectly links several unrelated findings and has reached conclusions which are misguided.

That is why the Australian Chamber of Commerce, Deloitte and a number of other reputable groups have reached a very different conclusion.