Gas pipeline, key to PM's gas project, could be held up by protesters, landholders

Such a delay would cause economic disaster, the project's Managing Director Garbis Simonian said.

"If we don't meet the deadline electricity prices go up there's blackouts, the economy suffers. Are they willing to risk that? Well that's up to them," he said.

Prime Minister Scott Morrison yesterday announced the government could step in to construct a new gas power plant in the Hunter if the private sector wouldn't.

The new power plant would replace the Liddell coal fired power station, set to close in 2023. Without a replacement, energy prices could spike by 30 per cent, he said.

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But the project would be dependent on completing the controversial Hunter Gas Pipeline to feed it fuel, according to Hunter Gas Pipeline managing director Garbis Simonian.

"You would need this gas pipeline. Naturally you need the gas to operate the gas power station," he said.

Prominent opponent Peter Wills, whose family farm would be affected by the pipeline, said landholders wouldn't be willing to grant an easement for the pipeline.

"Hunter Gas have still yet to negotiate with over 500 landholders, [for a] 30-metre wide easement on our land. They have yet to buy access to our land. That's not an easy five minute 12-month step-through project timeframe," he said.

He said he didn't know of any of those 500 farmers who were going to sign on the dotted line - quite the contrary.

"There's going to be blockades, let me tell you. That's what my neighbours and I are talking about here, quite conservative people.

"They require our signature on a piece on paper to get their pipeline approved. So our first step is to never give them our signature."

He said the pipeline would likely drive down the value of his property if built and "open Pandora's box" for new CSG projects throughout the region. Mr Wills said he would also not be able to access insurance for the infrastructure.

Mr Simonian said any effort to physically halt the pipeline would be illegal and would cause economic disaster.

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"The consequences of this is more serious than closing a single coal mine or two coal mines. We are talking about the Eastern Australian electricity grid and our manufacturing industry," Mr Simonian said.

"These people have got to realise the consequences of what they're proposing. It's very serious. People are going to lose jobs. They've got to think this through. It's not the wild west!"

In 2008 Liverpool farmers halted work on a mine at Caroona, later cancelled. Locals physically halted work on other resources projects including the Shenhua mine and the Narrabri Gas Project.

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Mr Simonian said the company was confident of completing the pipeline by 2023 and was in the process of securing landholder access, with a majority of local farmers willing to cooperate with the company. The pipeline from central Queensland to Newcastle has development approval.

The massive coal-fired Liddell power station in the Hunter Valley is scheduled to close by 2023. Prime Minister Morrison said energy prices would jump by 30 per cent if the station's capacity was not replaced by new gas generation by then.

In a speech in Newcastle on Tuesday the Prime Minister declared the "Commonwealth stands ready to step in to support pipeline development if necessary".

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