The Greens have credited the community campaign against an offshore gas proposal off the Coast of Newcastle, the Central Coast and Sydney for the decision by Sacgasco to walk away from an investment in the project.
Last Thursday, MEC Resources revealed to shareholders through the ASX, that Sacgasco has chosen to walk away from an option to acquire RL Energy. RL Energy is the ‘farm-in’ partner for the project operator Asset Energy and has committed to undertake 3D seismic testing to confirm the presence of gas in the exploration licence area.
Justin Field MLC, NSW Greens Marine and Fisheries Spokesperson said, “The acknowledgment by Sacgasco of "regulatory approval challenges" and "joint venture complexity" shows the PEP11 project is a dud. Companies are walking away from the project as they realise the political and environmental challenges make it too great a financial risk.
"The fact is that the community won't accept a gas field off the coast of Newcastle and the Central Coast. The decision by Sacgasco to walk away shows the community campaign is working to demonstrate the risks of developing an offshore gas industry in the region.
"Asset Energy and their remaining partners should heed the warning and shelve plans for more seismic testing before they waste more money on an unviable project.
“It’s long past time the Coalition and Labor Parties got on board with the community campaign to oppose this project and to reject offshore gas in NSW. The climate can’t sustain new fossil fuel development.
Last week the NSW Greens announced their plan to prohibit offshore gas exploration off the NSW coast including introducing legislation to prohibit the processing and transport of gas produced from wells offshore from the NSW coastline to the NSW mainland and to prohibit the construction of infrastructure relating to offshore exploration and mining activities in NSW. The Greens are also calling for a federal inquiry into the actions of the federal regulator NOPSEMA.