Gas pipeline on hold

21.06.2017

Originally, an 800-kilometre pipeline was to be built from fields in Queensland to Newcastle but it is now being redirected to a Liquid Natural Gas plant at Gladstone.

The project's managing director Garbis Simonian says a two-kilometre buffer-zone around towns has put other pipelines from the Hunter and the Gunnedah basin on-hold indefinitely.

He says millions of dollars have already been invested securing Hunter industrial customers but it is now pointless proceeding.

"There's a lot of uncertainty in regard to gas development policy in New South Wales," he said.

"Two or three years ago all of the companies were full steam ahead developing the gas fields in the Gunnedah basin and in the Hunter, however we've put the pipeline project on hold because we rely on the gas that comes out to be transported."

Mr Simonian says if the project does not proceed the region can expect prices to escalate and some industries to close.

He says consumers need to be aware that gas supplies in the sate are almost exhausted.

"The gas contracts we have with the other States will begin to expire and we will face gas shortages in New South Wales," he said.

"Gas prices are going up considerably and that's going to mean that some companies will close and people will be unemployed."