Two reports were released today which discuss in part the role of natural gas in NSW.
The reports highlight the consequences of higher gas prices in terms of business closures, job losses and cost-of-living pressures, and stress the need for new supplies of gas to be developed to minimise these impacts. The findings of these reports go to the heart of why Santos is seeking to develop natural gas resources in NSW.
The Australian Energy Market Operator’s (AEMO) scenario report projects declines in industrial consumption due to expected rises in domestic gas prices.
This decline in consumption will result in a loss of jobs in these industries.
Manufacturing Australia have also released a report that says up to 83,000 direct manufacturing jobs could be lost unless gas supply and prices challenges are addressed.
Manufacturing Australia’s Chairman, Mark Chellew in fact, says if we continue on the path we’re on Australia will lose much of our gas intensive manufacturing industries, and we’re not likely to get them back.
NSW needs an affordable supply of gas and that is exactly what the Santos Narrabri Gas Project will help to deliver.
Basic economics dictates that increasing supply will put downward pressure on gas prices.
Santos’ Narrabri Gas Project will supply up to 50% of NSW gas needs.
We have committed this gas to the NSW market.
This is the affordable supply of natural gas needed to fuel homes and provide the feedstock for the processes that drive our largest industries.
Santos has absolute confidence we can supply this gas safely without harm to the surrounding environment.
Peter Mitchley, General Manager – Santos Energy NSW