Great for ROGGet fracking or risk shortages, NSW warnedANGELA...

Great for ROG

Get fracking or risk shortages, NSW warned
ANGELA MACDONALD-SMITH AND LOUISE DODSON, AFR

NSW faces a potential crisis in gas supply within three years unless the government approves a number of coal seam gas projects despite community concerns, two energy consultancies have warned.

Opposition from landowners and community groups would probably slow the development of CSG projects and consumers would pay the price through higher energy costs, said independent consultant Wood Mackenzie.

Any slowdown could delay new gas-fired power projects and increase the state's reliance on coal, contrary to policies to reduce carbon emissions, reports The Australian Financial Review.

The warnings come as Santos, which holds the biggest CSG acreage in NSW, faces fierce opposition to its drilling plans in the Gunnedah Basin, in the state's north, because of concerns about potential damage to water aquifers and agricultural land.

AGL Energy is producing relatively small volumes of CSG near Camden, south of Sydney, while Metgasco plans to produce CSG in the Clarence Moreton Basin in the state's inner north.