AGL's coal seam gas exploration pilot program has been approved to flow test gas at Gloucester.
These new approvals for the Waukivory Pilot program from the Office of Coal Seam Gas mean AGL can now start fracking for gas flow for its four existing well located within the Stage 1 area of the Gloucester Gas Project.
Michael Fraser, AGL's CEO, said the pilot program is an important step int he development of the Gloucester Gas Project, and will help to secure a local gas supply for NSW.
"We welcome these approvals from the NSW Government," Fraser said.
"At present NSW produces less than five per cent of its own gas and imports the rest from interstate; however if the Gloucester Gas project proceeds we have the potential to bolster that locally produced gas figure to around 20 per cent," he said.
"All of the natural gas produced from the Gloucester Gas Project is for NSW customers and will not be exported."
Stage 1 has already been through an environmental assessment and received approval from the independent NSW Planning Assessment Commission.