New South Wales Authorities Allow Energy Firm to Employ Fracking

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New South Wales Authorities Allow Energy Firm to Employ Fracking New South Wales government in Australia has given AGL Energy the green light to employ fracking at coal-seam gas wells in its Gloucester project. Anthony Roberts, NSW Minister for Resources and Energy, expressed confidence that the project will catapult the state’s gas output levels to 20 percent from the present 5 percent.

“This will not be the only solution to our reliance on gas from interstate, but it is a significant and vital step in the right direction to improve supply for NSW,” said Mr. Roberts.

Mr. Roberts renewed AGL Energy’s exploration license for its Gloucester project for the next six years and said that the Office of Coal-Seam Gas had allowed the firm to “ fracture stimulate” about four wells located in its Waukivory Pilot development, which forms part of the Gloucester project. However, the company’s exploration area will reduce by 25 percent, reported the Sydney Morning Herald.

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Michael Fraser, the Managing Director of AGL Energy, revealed that gas from the Gloucester project will be used locally and won’t be exported. The company said that it had always consulted the public on the Gloucester development since 2009 and reassured locals that operations at Waukivory project site will be conducted safely and with minimal disturbance to the local populace.

The company also moved to reassure locals by saying that ten of the fracking chemicals are common in most homes, such as in detergents, food additives, hair products, soaps, cosmetics, preservatives and medications.

Fracking is a method of oil and gas extraction that involves injecting a solution comprising sand, water and chemicals at high pressure in order to fracture the underground shale rock, releasing the trapped oil or gas that is then pumped out. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.

To contact the reporter of this story; Jonathan Millet at john@forexminute.com