NSW Farmers strongly opposes the Narrabri Gas Project because it poses unacceptable and unmanageable risks to water security and agriculture. Coal seam gas development in the Great Artesian Basin is incredibly risky, as this critical groundwater is the very lifeblood of many farms and communities.
Australia needs to be smarter about how it uses existing gas supplies, and not allow a mining giant to threaten one of the largest underground freshwater resources in the world.
The Narrabri Gas Project endangers the Great Artesian Basin
The Great Artesian Basin lies beneath parts of the Northern Territory, Queensland, South Australia, and NSW, and holds about 65 million GL of groundwater – enough to fill Sydney Harbour 130,000 times. It is part of a vast network of interconnected aquifers that sits beneath almost half of the continent, providing the only reliable water source for many farms and communities.
The Narrabri Gas Project would see 850 coal seam gas wells in the Great Artesian Basin’s southern recharge region. Coal seam gas extraction depressurises target seams and produces high salinity water, raising risks of groundwater leakage and contamination.
Contamination of groundwater is a major environmental risk in the extraction of coal seam gas, either in the spilling of high-salinity wastewater or due to failures in wells or boreholes that allow gas or fluids to escape and cross-contaminate other aquifers.
There is no practical way to remediate contaminated groundwater. If the Great Artesian Basin is contaminated by harmful chemicals, it can never be used again.
Australia doesn’t have a gas shortage
Politicians and mining giants like Santos claim NSW needs more gas, but the ACCC’s ongoing Gas Inquiry shows the state’s not short of gas at all. In fact, the existence of gas pipelines across eastern Australia means NSW is connected to the world market.
Any gas shortages are caused by export decisions, pipeline flows, and investment timing, and adding Narrabri gas will simply add to the pool of gas that can be exported. This project cannot guarantee domestic supply security because export market dynamics dominate the system. In fact, the Australia Institute’s critique of the Narrabri Gas Project is scathing, and it is clear that the so-called “benefits” are dubious at best.
Narrabri Gas won’t lower electricity prices
ACCC reporting makes it clear that domestic prices are closely linked to the international gas market. With Australia already exporting about 80 per cent of the gas produced (making us a world leader), adding more supply is highly unlikely to mean cheaper electricity.
When you look at the fact that Narrabri gas is likely to be one of the most expensive sources of gas in eastern Australia, and then consider factors such as export parity, transport constraints, and generation mix, it’s ludicrous to suggest Narrabri gas will do anything to reduce power costs for Australians.
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