Lock The Gate Alliance has labelled the coal seam gas (CSG) industry as dishonest and untrustworthy after the release of a new report which shows that the CSG export industry will cause wholesale gas prices in Australia to triple.
In February, the CSG industry said that proposed new rules on coal seam gas mining would lead to higher energy prices in NSW and their website states that the CSG industry could reduce wholesale electricity prices.
However, the new report by The Australia Institute reveals that gas prices are st to rise dramatically across eastern Australia because of plans by the gas industry to start exporting gas from Queensland, leading to export parity pricing in Australia.
“This new report by The Australia Institute shows that the greatest threat to gas prices on the eastern seaboard is the CSG export industry itself,” said Carmel Flint, campaign co-ordinator with Lock the Gate Alliance.
“It proves that the scare campaign being run by the gas industry against community opposition to coal seam gas, claiming it will lead to energy price hikes, is a whole lot of hot air.
“There is no doubt that the primary driver of gas price increases in Australia is the gas industry seeking bigger profits by exporting Australian gas to Asia to exploit higher prices.”
Shaun Murray, Darling Downs Coordinator for Lock the Gate said, “This report suggests that even if the CSG industry is allowed to continue the wholesale industrialisation of rural Queensland, the massive gas export projects are just going to drive up prices for Australian consumers.
“These price hikes add to a long list of problems associated with the CSG industry, including the damage being done to our farmland, to our aquifers, and to the health of nearby communities. It’s very difficult to see any net benefits for ordinary Queenslanders.
“Now that the energy affordability argument in favour of CSG has been comprehensively debunked, our governments should act quickly to implement a moratorium on this damaging industry,” he said.