State onshore gas ban a federal deal-breaker

The Coalition will not fund any multibillion-dollar energy deal with Victoria to reduce carbon emissions and lower power costs unless the Andrews government ditches its longstanding ban on onshore gas exploration.

The federal and NSW state governments have made a
$2 billion joint deal to up gas supply and lower emissions.

The Morrison government would also demand Victoria safeguard against sudden shocks to power prices and supply, like the closure of the Hazelwood power station in 2019, in any deal similar to the $2 billion agreement it struck with NSW.

Victorians were asked to cut their power use in Friday’s searing heat to avoid crashing the state’s fragile grid, on the same day, the Morrison government and NSW announced a deal they say will reduce carbon emissions, lower electricity prices and improve reliability.

The deal, which could be the first in a series of agreements between the Commonwealth and states, will see nearly $1 billion of federal money go to NSW to pay for carbon abatement and energy projects.

Read the story from The Age - “State onshore gas ban a federal deal-breaker.”