Hundreds of Central Coast businesses could face huge cost increases if action is not taken on dwindling gas supplies in NSW, says NSW Business Chamber Regional Director, Paula Martin.
Martin said a report, Running on Empty, commissioned by the Chamber and prepared by EnergyQuest, further explores a forecast from the Australian Energy Market Operator (AEMO) that the state will face serious gas supply shortfalls by 2025.
“On the Central Coast we have some of the largest manufacturers and bakers, supplying goods we all love to consume across the country, ” Martin said. “In fact, almost 900 of our local businesses operate a manufacturing operation and combined, form the second largest employers on the Central Coast.
“The prospect of skyrocketing gas costs compared to similar producers in Queensland will have severe impacts to end consumer pricing or worse, force potential business closures. ” Martin said gas users had already seen prices triple over recent years.
“Poor planning and a lack of action to develop significant gas resources in this state have resulted in NSW suffering the most expensive gas in mainland Australia and the least certainty with respect to gas supply security, ” she said.
“As an example, the report identifies cost increases per year of $26,400 for a typical commercial bakery, $66,000 for a galvanising plant or $369,600 for a tomato processor based in NSW. “At least 300,000 jobs in NSW, including up to 250,000 in manufacturing industries, depend on adequate and affordable gas supply.
“Proven reserves currently available in NSW would meet demand for just 35 days, yet gas resources known to be in the ground across the state could supply the same level of demand for 174 years.
“The Central Coast is home to some of the State’s biggest gas users, powering large manufacturers and bakers. “The last thing we want is for these significant employers to move away to areas with more reliable and affordable gas. “Urgent action must be taken to protect the viability of these businesses and the jobs they create. ”
The report calls on the Government to: approve the Narrabri Gas Project; support proposed LNG import terminals at Newcastle and Port Kembla; and, begin upgrades to ageing gas pipeline infrastructure.
Source: Media release and statement, Dec 3 NSW Business Chamber Central Coast Regional Director, Paula Martin