A report by the NSW Business Chamber calling for the government to fast-track the Narrabri Gas Project has been blasted for misrepresenting the situation.
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The report forecast NSW will face serious gas supply shortfalls by 2025, with thousands of jobs at risk.
However, Institute for Energy Economics and Financial Analysis (IEEFA) gas expert Bruce Robertson said the gas industry was crying wolf, as this was not the first time the state had been threatened with shortages.
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"In 2014, AGL claimed NSW consumers would face gas shortages by 2016 if their Gloucester Gas Project was not quickly approved," Mr Robertson said.
"The Gloucester Gas Project did not proceed, and no gas shortages ensued. Australia has abundant gas for everyone, and yet the gas companies would have us believe we are running out.
Mr Robertson said the nation produced plenty of gas, however gas companies had locked themselves in to over ambitious international export deals, with 70 per cent of east coast gas exported, leaving just 30 per cent to supply the domestic market.
Lock the Gate spokesperson Georgia Woods echoed the comments of the IEEFA, and said the gas companies were the "architects of the gas price crisis".
"This year's ACCC gas inquiry interim report showed that supply for gas has increased and demand has dropped," Ms Woods said.
"There's no shortage of gas, there's just too much expensive gas that drains aquifers and wrecks rural communities and economies.
"What manufacturing needs in NSW is a bit of vision and an industry plan for switching to cheap and reliable renewable energy."