Malcolm Turnbull demands Premier Gladys Berejiklian get moving on new gas fields

PRIME Minister Malcolm Turnbull has demanded Gladys Berejiklian get moving on new gas fields and approve a major project in Narrabri, with looming shortages forecast to be three times worse than expected next year.

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PRIME Minister Malcolm Turnbull has demanded NSW Premier Gladys Berejiklian get moving on new gas fields and approve a major project at Narrabri, with looming shortages forecast to be three times worse than expected next year.

And he threatened energy company bosses with massive export restrictions unless they come up with a plan to stop a full-blown crisis hitting families and businesses with higher bills than ever.

The moves followed the nation’s consumer watchdog issuing a damning report which found Australia’s shortfall of gas in 2018 would be big enough to power Penrith or Wollongong for more than a century.

The Australian Consumer and Competition Commission also warned that shortage could put low-income families at particular risk by forcing them to cut back on the amount of energy they use “to the detriment of their health or wellbeing”.

It also revealed that at least one major gas company was planning to export more gas than it needed to, putting profits ahead of struggling families and small businesses.

Mr Turnbull stopped short of pulling the trigger on sweeping limits on gas exports, but said he would “not let the power bills of Australians rise further and further because of a shortfall of gas on the east coast of Australia”.

Prime Minister Malcolm Turnbull has demanded action to fix the looming energy crisis. Picture: AAP

He will speak to the largest gas producers — Santos, Origin and Shell — again later this week as the government nears a November 1 deadline to get export limits in place.

The ACCC and the Australian Energy Market Operator, which regulates the sector, have backed reforms to lift the looming threat of gas shortages.

A separate report released yesterday by the AEMO put the expected gas shortage next year at between 54 and 107 petajoules.

Just 107PJ is the equivalent of enough power for Penrith or Wollongong at current usage levels for 107 years.

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“Export controls may go some way to addressing this shortage in the short term,” ACCC chairman Rod Sims said.

“However, further steps are needed to address the underlying problems of lack of gas supply and lack of diversity of suppliers in the east coast gas market.”

Penrith’s high St. Experts say 107PJ is enough to power Penrith.

Or Wollongong...

NSW produces just 5 per cent of its own gas, and the state government has no plans to release more land for coal seam gas mining despite suggesting it would last year.

“We strongly encourage the NSW government to approve the development of the Narrabri gas project,” Mr Turnbull said.

“That is critical to the energy security of Australia, the energy security of this state, which I might say imports 95 per cent of the gas it uses. It is untenable for us to be facing gas shortages here on the east coast of Australia.”

The PM has taken aim at NSW Premier Gladys Berejiklian. Picture: AAP

Treasurer Scott Morrison with the report on Monday. Picture: AAP

The Narrabri project, in the state’s north west, has been mired in red tape since the first agreement between owner Santos and the NSW government in 2014.

Santos claims it could provide up to 50 per cent of the state’s gas needs, with the project waiting for approval from the Planning Department.

However, opening land up for coal seam gas projects is politically fraught, with the Nationals losing one seat and coming close to losing a second on the north coast at the last state election following protests by environmental activists and landowners.

Concerns centred on the “fracking” method used to access coal seam gas and access to private land where the gas is found.

But Labor is demanding Mr Turnbull immediately limit gas exports, accusing him for refusing to act on skyrocketing power bills.

A Santos pilot well near Narrabri.

“The Prime Minister has failed to meet the test he set for himself, putting jobs at risk,” Labor’s energy spokesman Mark Butler said.

Any gas export limit would come into effect on January 1.

Opposition Energy spokesman Mark Butler says the PM has failed to secure jobs. Picture: AAP

Mr Turnbull will “not let the power bills of Australians rise further”. Picture: AAP

The Australian Industry Group, which represents manufacturing businesses, said: “The ACCC report gathers sworn evidence and confidential data to paint the clearest picture yet of the real state of the gas market — and it is not pretty.

“The gas crisis warnings coming from industrial gas users, from small metal bashers to medium food processors to huge chemicals businesses, have been confirmed in every respect.

“(These reports) make it clear we are facing an emergency and that there will be a need to divert gas from export into the domestic market.”

NSW Energy Minister Don Harwin denied there was a moratorium on onshore gas development in the state, despite no projects receiving approval.

NSW Energy Minister Don Harwin. Picture: AAP

“In June we implemented the strategic release framework, which identified new areas for gas exploration,” he said.

“The Strategic Release Advisory Body, led by our state’s chief scientist Mary O’Kane, is evaluating two prospective conventional gas troughs in Western NSW.

“The Narrabri gas project is currently under consideration in the planning system.”