The Australian state of New South Wales said a controversial coal seam gas project planned by Santos Ltd should be approved as it would be crucial to plugging an expected shortfall in supply from 2024.
The recommendation, following a three-year review, was handed over on Friday to the state’s Independent Planning Commission, which now has 12 weeks to determine whether the A$3.6 billion project should go ahead.
The project could meet up to half of the state’s gas needs, helping to replace the rapidly depleting Bass Strait gas source that has supplied Australia’s southeastern states for 50 years. The state’s review found that in addition to providing essential gas supplies, the project would keep a lid on gas prices, support the development of gas-fired power stations to back up wind and solar power and create jobs.
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