Australian industry group Australian Energy Producers has welcomed a decision by the NSW Government to open new areas for gas exploration for the first time in more than a decade, describing the move as a critical step toward strengthening the state’s future energy supply.
In a media release, the organisation said the planned release of acreage in the Bancannia and Pondie Range Troughs could help unlock new domestic gas resources, as part of broader efforts to support energy security in New South Wales.
Australian Energy Producers NSW State Director Peter Kos said the announcement marked an initial step in expanding supply. “[The] announcement is the first essential step in unlocking new domestic natural gas resources for NSW homes and businesses,” he said.
Kos said natural gas continues to play a role in the state’s energy mix and economic activity, while emphasising the need for ongoing investment. “Natural gas is essential to NSW’s energy security and economic growth, and we need continued investment in exploration and production to secure our state’s long-term energy needs,” he said.
Under the plan, the NSW Government will begin an Expression of Interest process for exploration licences from 1 May. The process will be accompanied by policy changes, including a reduction in application fees for gas exploration licences.
Kos said the lower costs could support increased participation in exploration activity. “Lowering application costs is a practical step to encourage new exploration activity and support the development of additional supply,” he said.
He added that increasing supply would be key to addressing pricing and reliability concerns. “With more than 1.5 million gas connections across the state, bringing on new supply is the most effective way to ease pressure on prices and ensure reliable, affordable energy for households and businesses,” Kos said.
The announcement highlights ongoing debate around the role of gas in the energy transition, with industry groups pointing to supply and affordability considerations, while broader discussions continue over environmental impacts and the future energy mix.
