Energy operators told to “crack on” with gas projects amid energy crisis

Major manufacturers and Narrabri locals are crying out for more gas in the energy mix, while NSW Minister Matt Kean is urging power companies to switch coal-fired generators back on.

Treasurer Matt Kean has told energy operator Santos to “crack on” with the approved Narrabri gas project as the state stares down the barrel at an energy crisis.

Mr Kean said he was an “enthusiastic supporter” of the Narrabri project but there was nothing more the government could do to fast track the project — which is due to go online in 2025.

“This has been through a rigorous assessment process, it's now up to Santos to crack on with the job. Get that gas out and get it into homes and businesses in NSW,” he said.

As revealed by The Daily Telegraph, Mr Kean confirmed that he has spoken to energy operators to bring back coal-fired power stations that have been offline.

“We need to get our coal-fired power stations back cranking up. I've spoken to all the CEOs of the energy companies and made my views very clear,” he said.

Treasurer Matt Kean. Picture: Gaye Gerard.

“We need our power stations running at full tilt during this winter period so that we are less reliant on gas.”

When asked if the energy crisis, exacerbated by the war in Europe, would prompt the government to approve more gas projects, Mr Kean said the government had approved Narrabri and Port Kembla.

“The government will obviously look at all options to look at energy security here in NSW … the government has approved the Narrabri gas project which will more than meet NSW‘s needs for gas now and into the future,” he said.

“In addition to that, we have approved the Port Kembla gas terminal.”

He added that nuclear power could have a role in lowering power bills in the future but those proposing investment in nuclear power now are “chasing unicorns”.

The Daily Telegraph revealed on Tuesday that Mr Kean had sought assurances from power companies that they are doing everything possible to keep prices down.

A gas well at the Santos Narrabri Gas project. Picture: Nathan Edwards.

Federal Resources Minister Madeleine King said that to drive prices down, existing coal fired power stations needed to be “rebooted”.

“What will help put downward pressure on prices is for the existing coal fired power stations to come back online,” she said.

She said some “planned outages” have “come all at once”.

“It’s a perfect storm of events that have caused this.

“Obviously, coming in the cold weather snap is not a good thing, and also driving up the prices for manufacturers is wholly negative.”

The nation’s energy ministers, including Mr Kean, are set to meet with federal Minister Chris Bowen on Wednesday to address the worsening energy crisis.

Resources Minister Madeleine King says coal-fired power needs to be “rebooted” to weather a “perfect storm”. Picture: Anna Rogers

Meanwhile, a major manufacturer has cried out for new gas projects like Narrabri to be developed as soon as possible to supply reliable and affordable gas to the Australian market.

The major project, which could supply half of NSW’s gas needs, could come online as early as 2025, after Santos CEO Kevin Gallagher said the company was doing what it could to speed up development.

“We are trying our best to support the market and will continue to work with our customers on the Narrabri Gas Project,” CEO Kevin Gallagher told The Daily Telegraph on Tuesday.

“We know that customers are crying out for this gas and we have greater demand than we will be able to meet when the project comes online,” he said.

Major manufacturer Brickworks, which employs 486 staff in NSW, yesterday called for new gas to come into the market to give customers certainty.

Santos CEO Kevin Gallagher. Picture: Glenn Campbell

“Whilst we are contracted for gas until the end of 2024, I have real concerns about future gas supply availability and price for Australian manufacturers if new gas projects don’t come online in the coming years,” Brickworks Managing Director Lindsay Partridge said.

“Ensuring there is sufficient ongoing gas supply available at a reasonable price is crucial to protect Australian manufacturing jobs.”

“Brickworks supports calls for the development of new gas supply projects, like the Narrabri Gas Project, that will provide domestic consumers with a reliable and affordable gas supply for the years to come.”

The Narrabri project is now on track for delivery after delays from red tape and legal challenges.

Locals on Tuesday night said Narrabri cannot come online soon enough.

“We’ve been waiting for many many years for that to happen, we’ll just wait until it does happen to reap the benefits,” Narrabri Mayor Ron Campbell said.

Narrabri Industrial Network President Justin Smith said it was time to “get the show on the road”.

“NSW is just missing out on a massive opportunity to supply gas going into Sydney,” he said.

Originally published as Energy operators told to “crack on” with gas projects amid energy crisis