"The two major drivers of the impairment charge have been the fall in global oil prices with consequent effect on long-term Queensland gas prices and Waukivory Pilot well data indicating lower-than-expected production volumes for the Gloucester Gas Project," the statement said. Residents in Gloucester, NSW, crack open the bubbly to mark AGL's exit. Credit:Groundswell Gloucester Anti-CSG opponents had long argued that the Gloucester project - over which even senior government officials had raised doubts concerning the complex geology of the region - should never have gone ahead. "It means the biggest party you've ever seen," John Watts, a spokesman for Groundswell Gloucester, said. "The Gloucester community has endured much pain in recent years and will be greatly relieved by this sensible decision," Mr Watts said.

"We trust that AGL will now help to repair the damage done by the company and the government to the fabric and economy of this beautiful town," he said. "We hope that the healing process can now begin."



The company, though, put the exit from Gloucester down to economics rather than external pressure: "AGL has completed the business case for the Gloucester Gas Project, which incorporated disappointing gas flow data from the Waukivory Pilot wells and economic modelling of the gas resource". The Queensland government has released land for gas exploration which can only be used for domestic use. Credit:Ryan Osland "Unfortunately, the economic returns to support the investment of approximately $1 billion were not adequate." The company will cease production at the Camden Gas Project in South West Sydney in 2023, 12 years earlier than previously proposed, AGL said. Protesters outside AGL's offices in North Sydney gathered every week for more than two years. Credit:Peter Rae

AGL will also sell its Queensland assets at Moranbah, Silver Springs and Spring Gully. 'Smart decision' Without community support, these projects are doomed to fail Kate Smolski, Nature Conservation Council Greens mining spokesperson Jeremy Buckingham welcomed the "wonderful and smart strategic decision by AGL to get out of a fossil fuel that was floundering in the face of community opposition". "AGL seems to be making a significant effort to transition itself from climate baddie, to an energy company with a clean future," Mr Buckingham said. "We hope this continues."

"The Greens congratulate the efforts of so many people over so many years to oppose coal seam gas in the Gloucester Valley and share their joy of being able to move on with their lives knowing that their land and water is protected." AGL's shares ended trading on Thursday up 26 cents, or 1.4 per cent higher, at $18.77 in late-morning trade, lagging the overall market's advance of 2.1 per cent. Santos next Other environmental groups have welcomed AGL's move, with the NSW Nature Conservation Council describing it as "a victory for the community and the environment." "This decision clearly demonstrates how risky investment in CSG ventures now is, and that the coal seam gas industry does not have a social licence to operate in NSW," Kate Smolski, the council's CEO, said.

"Without community support, these projects are doomed to fail. Companies that attempt to impose this dirty industry on unwilling communities will suffer significant reputational damage and potentially large financial losses," she said. The group said Santos would now face pressure from the community for its plans to develop CSG in the Pilliga State Forest in northern NSW. "Santos must be aware the movement will now turn it's full attention to ending the threat posed by CSG to the Pilliga, the largest woodland left in NSW, where Santos plans to drill more than 850 wells," Ms Smolski said. Fairfax Media sought comment from Santos. Review called for

Groundswell Gloucester's Mr Watts said the whole project near the town "was flawed from the start and the NSW government and its agencies must now be held accountable for their appalling behaviour". "The whole process needs to be examined so that other communities do not have to endure what Gloucester has gone through," he said. AGL faced a litany of problems at the site, including the difficulty of finding an outlet that would take its waste water.