The NSW Government is opening new areas for gas exploration in NSW for the first time in more than a decade, taking steps to secure the State’s energy supply for households and businesses.
NSW is forecast to face gas shortfalls in the years ahead, with the Australian Energy Market Operator warning of supply gaps across the east coast. Gas is not only used in homes – around 40 per cent of NSW's gas goes directly to industry, where it is used to generate the high-temperature heat needed to manufacture products like glass, bricks, chemicals and processed foods.
Gas also plays a critical role in keeping the electricity grid stable. As NSW increases its renewable energy generation, gas helps ‘firm’ the grid, providing on-demand power that keeps the lights on when wind and solar output is low.
The NSW Government is taking practical steps to strengthen domestic supply and bring NSW in line with other states, which are looking for new gas projects.
Two regions in the state's Far West – the Bancannia and Pondie Range Troughs – are open for gas exploration applications.
To attract investment and ensure NSW remains competitive with other states, the Government will also update regulations to reduce the gas exploration licence application fee from $50,000 to $1,000.
Not all exploration licences will proceed to production. Any prospective gas project would be subject to an independent planning assessment, with strict environmental protections and comprehensive engagement with local communities, landholders and Traditional Owners.
Find out more about emerging opportunities for gas exploration in NSW (PDF, 190.41 KB)
