One of the primary benefits of the Queensland Hunter Gas Pipeline is to provide greater security of gas supply to the Hunter with the potential to deliver gas to areas not currently serviced. Greater security of gas supply will positively effect investment, job creation and environmental outcomes. Benefits can be seen as economic, environmental and social.

Economic benefits

• Greater security and diversification of gas supply, creates industry confidence, and stimulates industry development.
  
  
• Increased competition in the energy market creates greater choice for industry and consumers and could potentially lead to cheaper gas supply.
  
  
• The construction of the pipeline will create opportunities in the medium and long term for accessing gas. Increased access creates investment and stimulates the growth of industry in regional NSW.
  
  
• The pipeline will provide opportunities for the creation of tradable NSW Greenhouse Abatement Certificates (NGACs). NGACs are a type of carbon credit issued by the NSW Government as part of its Greenhouse Gas Reduction Scheme (GGAS). Each NGAC abates one tonne of carbon dioxide for 100 years. NGACs can be created in many ways but one method is by generating electricity in a manner that comparatively reduces the greenhouse gas emissions per megawatt hour (such as using gas instead of coal).

• Enhanced employment opportunities through the development of new industries, increased economic activity resulting from the project.

Environmental benefits

• Natural gas is a source of energy that can be used for electricity generation; it is a ‘cleaner’ alternative to coal as it produces less greenhouse gas emissions.
  
  
• Both the State and Commonwealth Government are encouraging the reduction of green house gas emissions levels. Use of gas in preference to coal, supports these Government initiatives.
  
  
• The Queensland Hunter Gas Pipeline project will provide greater security of supply, thus providing an alternative energy source, with potential to reduce reliance on coal as the primary energy source of the Hunter Valley region.

Social benefits

• It is expected the project will create up to 600 jobs during the construction period, and around 25 direct jobs when operational.
  
  
• Through the development of new industries supported by the security provided by the pipeline, employment and increased economic activity is expected to flow from the project.
  
  
• Greater choice of energy products where gas has not previously been available.