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AGL halts CSG expansion plans


AGL Energy has suspended an expansion of its coal seam gas operations in southwest Sydney due to community concerns.

AGL has requested the NSW Departments of Planning and Infrastructure to suspend its assessment of the company's proposed expansion of Camden gas project.

"AGL understands that there are some members of the community who are concerned about the current proposal and we believe that this suspension will allow us to consider those community concerns," AGL's general manager of upstream gas Mike Moraza said in a statement on Friday.

A public hearing on the expansion due to be held on February 25 has also been suspended.

Opponents to coal seam gas (CSG) operations in the Sydney region argue the practice endangers the city's drinking water resources.

AGL has been producing CSG at Camden since 2001, and the operations provide about five per cent of NSW's natural gas needs.