New South Wales to Open New Areas for Conventional Gas Exploration

Australian New South Wales state will release new areas for conventional gas exploration – “in areas that do not raise a conflict between gas exploration and the local community”, resources and energy minister Don Harwin said June 6.

“When we released the NSW Gas Plan last year we said we would pause, reset and then recommence gas exploration on our terms,” Harwin said. He added that no new areas will be released for coal bed methane exploration.

Geologists have identified the Bancannia Trough north of Broken Hill and Pondie Range Trough north of Wilcannia for initial assessment by the Advisory Body for Strategic Release, an independently chaired expert group, the resources and energy ministry said, adding that these two areas are located away from prime agricultural land and residential areas.

Although coal bed methane exploration is not officially banned in the state, the present government has paused the sector and bought back exploration licences. 

Meanwhile, the ministry stated that as part of the NSW Gas Plan, Santos’ Narrabri gas proposal is under consideration as a strategic project. In February, Santos filed the State Significant Development Application and associated Environmental Impact Statement (EIS) to the state’s Department of Planning and Environment in a bid to take the project forward. Santos believes the project can supply 50% of state's gas needs. 

The country's top oil and gas industry body, APPEA has welcomed the decision to release the two remote areas for conventional gas exploration.

“The industry hopes that this signals, at last, recognition that developing local gas supply is essential for NSW industry and residential customers,” said APPEA CEO Malcolm Roberts. 

Shardul Sharma