New South Wales Must Lift Restriction on Gas Exploration, Production

The NSW Government must immediately lift restrictions on natural gas exploration and production following ominous warning from the Australian Energy Market Operator about tightening supply, the Australian Petroleum Production & Exploration Association (APPEA) said Friday.

The Australian Energy Market Operator’s (AEMO) 2013 Gas Statement of Opportunities says “there will be flow-on effects for New South Wales with potential shortfalls of 50-100TJ/d [terajoules per day] over winter peak demand days from 2018.”

APPEA Chief Operating Officer Eastern Australia, Paul Fennelly said: “Now is not the time to be saying no to natural gas development. The AEMO report shows that committed and advanced gas projects in NSW are not sufficient to completely alleviate potential supply shortfalls.”

There are serious consequences awaiting NSW households and businesses if restrictions on gas exploration and production are not lifted immediately by the NSW Government, he said.

“It’s absurd that NSW continues to get 95 per cent of its natural gas from other states despite abundant reserves that can be sourced safely just as it has in western Sydney for more than a decade,” Fennelly said. 

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