Hunter energy industries analysed by Tom from Denman

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Hunter energy industries analysed by Tom from Denman

Postby HVPA_research » Tue Mar 13, 2012 6:58 am

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Have a read ...a very good summary from Tom up in Denman.

As we live in the area you hear things that start to string the dots together, I hope I don’t boor you with this little story but it could give some insight into the panic and push for CSG.
The big reason is to introduce GAS as a alternative fuel source as the NSW Gov. have no real reserves of their own. Bayswater Mine (state owned) and the reserves around Muswellbrook/Singleton were sold off not that long ago to the private sector (BHP own Bayswater mine, renamed it Mt Arthur and are shipping all the previously domestic reserve O/Sea ASAP.) they paid only $300Mil for the reserves (chicken feed) which would have kept the generators running for many decades. They sold with a contract to supply some cheap to the State for a set period. That is why the State is pushing the Cobbora Mine at Dunedoo as the cheap coal agreement is soon to run out and they will have to start paying Export prices for the coal they used to own. The Cobbora Coal is low grade poor quality that is unsuited for export.

The other flurry of new coal exploration leases in the state & especially in the Mudgee/Denman area are also prospective sources of coal for the Power stations so as to have more than you need is never a bad thing, I would expect that the State intend to ensure that Coal production exceeds the export capacity of the ports to make sure that plenty is still available for domestic use as if the export capacity is greater to or equal the coal being dug up they could all chose to sell for a better price overseas and the state is stuffed.
I see the flurry of leases sold by the exiting Labour Gov. along with the 11th hour GSC wells at Gloucester as a departing Government putting in place a Butt covering plan so they could say they had ensured the power supplies by selling all these Coal leases and approving the start of the GAS expansion and the pipelines from Gloucester & Coolah.

Enter CSG.
Briefly we here in the Upper Hunter expect that the sale of the Power generators Liddell & Bayswater will happen and there is one main front runner (they are looking to buy into a generator in Victoria at the moment) the reason is that the power industry in a complete mess as far a cost blowouts and fuel supply sources & prices , carbon taxes etc and the State wants out of all the problems and want no responsibility for the future extreme high prices of domestic power to the public.

The main front runner to buy the Power stations is rumoured to be AGL, with this expect that all will be done to remove any barriers to them sourcing CSG from the Hunter area which gives an insight into the very panicky behaviour and willingness to sacrifice the Hunter Wine & Horse breeders along with anything else that prevents CSG.

We must ask why do we have no state held coal reserves.
Why do the big exporters like BHP have our coal reserves and why.
Why was the situation mismanaged so badly where they sold the domestic reserves off for only $300mil yet charged the Chinese $330mil for the exploration lease alone at Watermark.

The motivation for CSG in NSW is panic for fuel sources to feed the Hunter Power stations, they have no coal and they will have to start paying through the nose for it very soon.
Panicky people are doing stupid things and that is my take in the situation based on the buz in the upper hunter.

I also think that the export terminal at Port Hunter is a secondary diversion as most of the Gas won’t make it that far.

I hope to see Brett and others at the AGL meeting on Tuesday night and put the idea that we need to counter with a Local groups forum where Wine, horses, Olives, Dairy etc put their views to the community as the community is currently only getting presentations form the Gas & Coal people.


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