ENERGY POLICY – NEW SOUTH WALES

Coal plan could mean supplying at cost

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Original article by Nick Evans, Perry Williams
The Australian – Page: 2 : 20-Jan-23

BHP’s production report for the December quarter shows that it expects each tonne of coal produced at its Mt Arthur mine in NSW to cost up to $US91 ($132) per tonne in 2022-23. This compares with the price cap of $125 per tonne that the state government has imposed on thermal coal that is supplied to the Liddell and Bayswater power stations. BHP may be forced to supply up to 1.5 million tonne of coal at cost to the power stations under the state government’s domestic coal reservation policy. The existing policy implemented in late 2022 applied to a small number of thermal coal producers, but it will be broadened to include major producers such as BHP and Whitehaven Coal.

CORPORATES
BHP GROUP LIMITED – ASX BHP, WHITEHAVEN COAL LIMITED – ASX WHC

Coalminers told to keep the lights on

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Original article by Perry Williams, Nick Evans
The Australian – Page: 1 & 4 : 19-Jan-23

The NSW government will require the majority of mining companies to reserve up to 10 per cent of their thermal coal output in the state for the domestic market. The domestic coal reservation policy is expected to be implemented by the end of January. The government had previously only required some thermal coal miners to reserve part of their output for the state’s power stations, but this prompted complaints that it placed an unfair burden on a small number of ­producers. Coal-fired power stations generate about 60 per cent of the state’s electricity supply.

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PM strikes $2b gas deal with NSW

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 31-Jan-20

Prime Minister Scott Morrison and New South Wales Premier Gladys Berejiklian will release details of a $2 billion energy deal on 31 January. Under the agreement, NSW must find an extra 70 petajoules of gas per year for the east coast market, in return for the federal government underwriting new non-coal power generation, constructing new interconnectors and making funding available for carbon emissions reduction projects. The most likely way in which the NSW government will make available the extra 70 petajoules of gas is by approving Santos’s Narrabri coal seam gas project.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET, SANTOS LIMITED – ASX STO