Dart Energy: Proposed CSG Regulation, Set Back for NSW Economy (Australia)
Dart Energy said that it will continue to assess the proposed changes to the State’s approval processes and regulatory regime for coal seam gas (CSG or CBM), announced yesterday by the NSW Government.
Whilst this review is undertaken, Dart will continue to focus on its unconventional gas projects across its International asset portfolio.
Yesterday’s announcement by the NSW Government highlights the strength of Dart’s diverse portfolio of international projects. This portfolio approach to investment has reduced Dart’s exposure to individual country risk and accordingly its NSW assets form only one component of the company’s total portfolio. Dart Energy International (DEI), is a global unconventional gas business with CBM and shale gas assets located in the UK, Europe and Asia. DEI’s CSG project at Airth in Scotland has a Gas Sales Agreement which, subject to all approvals, aims to supply up to 60 Bcf of gas over 8-years to SSE the UK’s 2nd largest energy utility.
Dart’s Chairman Nick Davies said; “We will review the detail of the proposed regulatory changes to fully understand the implications for our NSW assets. With many of the State’s long-term gas supply contracts due to expire from next year, the NSW Government’s decision will complicate efforts to safely source local natural gas for industry and its one million domestic gas users. Clearly, increased regulation in NSW will result in the export of capital interstate and offshore to countries that work more constructively with industry. DEI will continue to focus on maximising shareholder value through the commercialisation of its international gas resources in a sustainable and environmentally responsible manner. DEI has already shown that it can produce CSG at commercial rates from Airth in Scotland without the need to fracture stimulate the coals (fraccing)”.
LNG World News Staff, February 20, 2013; Image: Dart