Hunter Domestic Gas Supply at an All Time Low

BY LAUREN KEMPE

There will be a shortfall in domestic gas supply in the Hunter, after the ACCC'S energy interim report found the east coast's shortage will be three times larger next year than previously forecast.

Several politicians have said a domestic reservation policy is not necessary as Australia has enough gas, but a Hunter businessman says the government should be prioritising the domestic market.

Weston Aluminium Managing Director Garbis Simonian says it's crucial a bipartisan law on domestic gas energy is established at state and federal levels.

'Both state and federal governments are all accusing each other, and passing the blame. What we want is politicians to sit down around a table, both Labor and Liberal, and in the bipartisan fashion decide and work on a National Energy Policy. The economy is suffering, jobs are suffering, families are suffering and it's not good enough.'

Mr Simonian says higher gas prices drive up electricity prices, and the current situation is not sustainable.

'Now this is just common sense that any country or any state applies the gas and energy it finds, to satisfying the domestic market first, and then if there's a surplus, you can export it.

'All countries in the world give their domestic market a priority when it comes to gas, Australia is the only country that doesn't have a Domestic National Interest Policy.'

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Gas for the Hunter

BY RACHEL STORER

The gas-fired power plant at Colongra, on the Central Coast. Image: dailytelegraph.com.au

After the recent power crisis in South Australia, US Energy giant Tesla has stepped in to offer a 100-mega-watt battery which has been met with criticisms.

Managing Director of Weston Aluminium, Garbis Simoninan says that batteries are an expensive, ineffective answer to the power crisis and that focus needs to be on Hunter industries that are already being hit hard by rising gas and electricity prices.

"Desperate people are looking for silver bullets and there is no quick answer. If you really wanted to solve the crisis in South Australia with batteries you'd need at least 30 or 40 of them but that is very expensive and not cost effective."

Mr Simoninan says that a 100-mega-watt battery only lasts for an hour which doesn't solve the problem of prolonged power shortages or address the fact that Australia has some of the highest energy and gas prices in the world.

He believes the answer is gas-fired power plants, which means the Hunter needs a localised gas supply.

"New South Wales at the moment imports 95% of its gas from other states. We need to become independent and develop our own gas which can be done from sites such as Narrabri," Mr Simoninan said.

He thinks that the Hunter need to weigh up the environmental costs with the overall benefits to industries and homes.

"The two issues are fundamentally fracking and the water table. As far as the water table is concerned there is technology and regulations to manage any issues.

"Queensland has been extracting gas for 15 years and there have been no environmental disasters. If they can do it successfully so can New South Wales," Mr Simoninan said.

Ultimately Mr Simoninan warns that unless the Hunter region gets its own gas supply businesses will close and there will be mass unemployment.