JIM WILSON: Now, I spoke at the start of the show to Daniel Walton from the Australian Workers' Union. We discussed how the Independent Planning Commission has approved the proposed Narrabri coal seam gas field. This is a $3.6 billion project by mining giant Santos. Now the Planning Commission, after a four-year process, has given the project the nod, subject to what it describes as 134 stringent conditions. Now, as I said earlier, not everyone has welcomed the decision. The Climate Council says it's a dark day and a devastating blow to our climate and economy, and the Nature Conservation Council says the decision gives Santos the green light to desecrate the Pilliga Forest. But the Energy Minister Angus Taylor says the project will create jobs and lower gas prices along the east coast. And the Minister Angus Taylor is on the line this afternoon. Minister, welcome back to Drive.

ANGUS TAYLOR: Thanks for having me, Jim.

 

JIM WILSON: Tell us why the Independent Planning Commission has done the right thing.

ANGUS TAYLOR: It has done the right thing because this will create jobs. It is great news for Narrabri - 1300 jobs during construction, $3.6 billion of investment - but more broadly, this will help to put downward pressure on gas prices and electricity prices. Now, we're seeing that now. We've seen sharp reductions in gas prices and electricity prices even before COVID struck, which is great news. They were close to half of where they were even just 18 months ago. But we need more supply to come on if we're to sustain those lower prices and get them passed through to all the customers. So, Narrabri is important in that. It's an extra sources supply in New South Wales where it's desperately needed. Now, you've got to remember, gas is not just used for electricity generation and gas in our homes. It's also used for industry as a feedstock for really critical products like bricks, like fertiliser, plastics. More than half the food we eat is a result of nitrogen fertiliser that has come from gas. So, it's a really critical feedstock, and we need more of it in Australia, on the east coast in particular, and particularly in the south-east in New South Wales and Victoria. This is great news.

JIM WILSON: When do you expect the Narrabri gas project to be up and running, Minister?

ANGUS TAYLOR: Well, a couple of years away. There has got to be a federal approval. We'll move that through as quickly as we possibly can, and then it'll move to the company itself to get to its final investment decision. That's a matter then for the company of course. But they know that there's a shortage emerging a few years out and I'm sure they're very attuned to that, and they've said, they've been very clear they want this gas, Australian gas, working for Australians. They want to focus on the domestic Australian market, which is one of the reasons why we're so positive about it.

JIM WILSON: Minister for the Environment in this state, Matt Kean, isn't impressed. He says the future is renewables. He says: “The facts are the cheapest form of reliable energy that will benefit families and businesses in New South Wales and indeed across the country today is wind, solar, pumped hydro and batteries.” What do you say to that?

ANGUS TAYLOR: Well, I make two points. One is, I think he has welcomed the Narrabri project today, which is good news. But in making those comments about gas, I think he's out of step with his own party, his leader, and the people of New South Wales. What we need is lower gas prices, lower electricity prices, more access to manufacturing jobs, and gas is critical to that. Now, Gladys Berejiklian on 2GB this morning said: “Gas is critical to our future, no doubt about it.” So Premier Berejiklian gets it. The Chief Scientist Alan Finkel gets it. He's been very clear about that. Gas is part of our energy future.

JIM WILSON: Yeah. Well, the Premier did tell Ben Fordham the two prioritise are energy security and downward pressure on prices. Now, haven't these concerns from environment groups and the Climate Council, fracking and pollution of the water table. They are big concerns of farmers on the Darling Downs. Have you got similar concerns for Narrabri?

ANGUS TAYLOR: Well, it has gone through a four-year process, as you said, with over 130 conditions, and that's all about protecting the environment, making sure farmers are looked after. I farm myself. I mean, my family have farmed for approaching 200 years in New South Wales so we care deeply about our land and all farmers do. But that's why we have this IPC process. It's been very rigorous, and we have one of the most rigorous approvals processes in the world in New South Wales and across the states of Australia and that is to protect those other important participants in that region and stakeholders in that region. But it is great news for Narrabri because jobs will be created and that's what we want to see. Look, at this time, we need jobs, not only in projects like this, but in the downstream manufacturing and use of this gas which is so critical to our economy and job creation in sectors like manufacturing.

JIM WILSON: So, fracking and pollution of the water table is not a concern for you?

ANGUS TAYLOR: Well, no, it is a concern but the IPC is there to make sure that that doesn't happen, to put the conditions in place, to test this. That's why the State Government has the IPC and that's why they've imposed these conditions. So, it's about getting the balance right. And they've approved this on the basis of that balance with those conditions.

JIM WILSON: Okay. What will be the net result here? The bottom line as far as saving and cost as far as gas is concerned?

ANGUS TAYLOR: Well, we're seeing gas prices now, wholesale gas prices halved from where they were. Now that makes up about - the wholesale price, depending on whether you're an industrial user or a household user - that makes up about a third or more or as much as a half of your bill. So, it's a very significant reduction. If we're going to keep those reductions and pass them through to consumers, then we need more supply coming on and that's why projects like this are so important.

JIM WILSON: Minister, thank you for your time this afternoon.

ANGUS TAYLOR: Thanks Jim.

Media contact:

Minister Taylor's office: 02 6277 7120