NSW approves fracking pilot project at Gloucester

7th August 2014 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH (miningweekly.com) – The New South Wales government has given ASX-listed AGL Energy the all-clear to start hydraulic fracturing, or fracking, at an exploration pilot programme to test gas at Gloucester.

The miner said this week that it had received approval from the Office of Coal Seam Gas for the Waukivory pilot, as well as an environmental licence from the Environment Protection Authority.

MD and CEO Michael Fraser said that the Waukivory pilot was an important step in the development of the Gloucester gas project, which would secure a local supply of gas for businesses and communities.

Stage 1 of the Gloucester project has already been through a full environmental assessment and has received approval from the independent New South Wales planning assessment commission. The approval was upheld by the Land and Environment Court.

The Stage 1 project was also subject to commonwealth approval.

Stage 1 would include up to 110 gas wells and associated infrastructure, a central processing facility, a gas-fired electricity generating facility with the capacity of up to 15 MW, a transmission pipeline and a delivery station to connect the transported gas to the existing trunk pipeline.

Fraser said information from the Waukivory pilot would enable AGL to comply with the terms of the state and federal approvals, adding that the company would conduct its fracking operations in a safe manner, minimising the disturbance to local communities.