Coal seam gas, or CSG, is attracting its fair share of criticism in Australia. Now, even the analysts are pitching in.
Citigroup says the controversial method of extracting gas is proving a headache for AGL Energy in New South Wales, or NSW, as its ability to pursue its exploration program in the Gloucester and Hunter basins is being hindered by community issues and the state government’s “reluctance in taking a decisive stance” on the role of the technology in the long term.
A spokesperson for AGL was unreachable for comment.
Coal seam gas–trapped stores of methane hundreds of meters below the Earth’s crust–is one of the world’s hottest energy plays. Projects worth tens of billions of U.S. dollars are under construction in neighboring Queensland state to convert raw gas into liquefied natural gas for export to Asia. The rapid growth of the Queensland coal seam gas sector prompted several companies to explore the potential of coal-rich land in NSW.
Wall Street Journal
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