Friday, February 17

Local communities should question alleged benefits of Santos NSW CSG projects

The alleged benefits to NSW communities from Santos’ plans to develop coal seam gas (CSG) reserves in the north west of the state should be questioned in the light of inconsistencies and flaws in the economic modelling used to support the project, according to The Australia Institute.

Santos recently commissioned the Allen Consulting Group to examine the economic impacts of developing coal seam gas operations in North West NSW.

Far from delivering ‘once-in-a-generation economic opportunities’ as claimed by Santos, an Australia Institute analysis of this modelling reveals that the benefits to the local economy will be quite small, in the order of 30 new gas jobs, and that the environmental costs have been ignored.

Senior Research Fellow David Richardson said the Allen Report fails as a proper economic assessment of the impact of developing coal seam gas on local communities such as Boggabri, Coonabarabran, Gunnedah, Muswellbrook, Narrabri, Quirindi, Scone, Singleton and Tamworth.

“The Allen Report raises as many questions as it answers,” said Mr Richardson. “The report is based on a series of generous assumptions and largely ignores the biggest costs and risks of developing CSG in NSW.”

The Australia Institute analysis of the Allen Group’s modelling shows for example:

The Australian Institute

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