Coal news and updates

Aussie Industry Minister Macfarlane says govt has "done all we can" on coal seam gas

Coal seam gas (CSG) has been the subject of "an unnecessary scare campaign" that has misserved local communities but the federal government can do little to change the way it operates in NSW< Industry Minister Ian Macfarlane said.

"In the end it's up to state government," Mr Macfarlane said on Monday after addressing the annual Australian Petroleum Production & Exploration Association (APPEA) conference in Melbourne. "There's not much more we can do in the end. As was the case in Queensland it's a case of getting community acceptance."

"Bearing in mind that the tightness in the gas market in NSW has been predicted at this conference by me for at least five years I think we, the Commonwealth, have done all we can."

He said the federal government would continue to work with the states on gas, and on advancing the proposed pipeline to link the Northern Territory into the eastern states' gas grid.

Mr Macfarlane noted that in the recent NSW election, no seats  with CSG in them had actually changed hands to the Greens or the Labor party in the recent NSW election.

"The political reality is that the NSW government has a process, they're going to work through that process but if the argument is based around science and fact NSW will follow Queensland and see $60 billion worth of investments and 31,000 jobs and 5000 farmers who are much richer than they were before they signed up to co existence agreements on coal seam gas," he said.

Unconventional gas such as coal seam gas accounts for 40 per cent of production in the eastern states, and supports jobs and local supply, as well as being a major export sector Mr Macfarlane said earlier in his address.

He said market reforms planned in the gas sector would improve access to pipelines and allow for gas to be traded more easily, helping address potential shortages looming on the east coast because of the LNG export boom in Queensland.

Some industrial gas users have called for domestic gas reservation to prevent gas being shipped overseas that they could instead access at potentially lower prices than they are having to pay. But the industry opposes any such regime, and the minister reiterated his resistance to the concept.

"Bringing on new supply is the best way to meet demand at both the domestic and export levels," he said.

The government has been coming under pressure to be more aggressive on acreage retention leases, under claims that some companies are "warehousing" gas. Mr Macfarlane said there was no evidence that had occurred, governments needed eo snu

Mr Macfarlane said this year's offshore petroleum exploration acreage release, to be officially launched at the conference, includes 29 areas across eight basins in Commonwealth waters off the north, west, south and east coasts, as well as off Tasmania.

Six of the areas will be awarded using the government's new cash bidding system for some acreage, while the rest will be awarded using the traditional work bidding system.

Mr Macfarlane also said that the government was committed to further reform of the 457 visa system for offshore skilled workers to help the industry meet skill shortages and become more productive and competitive.

In addition to repealing the former Labor government's laws restricting the use of 457 visas, the government's actions to implement recommendations from an independent review of the 457 visa program "will further assist to strengthen the program's integrity," Mr Macfarlane said.

"The government supports flexibility and timeliness for visa processing and approvals. it ensures this industry stays productive and globally competitive." Mr Macfarlane told the conference.

"The government's actions in this area will therefore ensure businesses seeking to use the porgram incur less regulation and cost without compromising safeguards."

source: http://www.smh.com.au