The Minns Labor Government has released the NSW Gas Statement which outlines the critical, defined role gas will play to rebuild NSW's domestic manufacturing sector, support the growth of new low-carbon industries, and transform our energy system to power the state's future prosperity.
The NSW Gas Statement provides an overview of the state's gas outlook and the actions being taken to support energy security, economic growth and the orderly transition to a net zero economy.
NSW's energy system is changing rapidly, as ageing coal-fired power stations are replaced by renewable energy, firmed by a significant amount of storage and backed up by gas-fired power stations.
Forecasts from the Australian Energy Market Operator indicate potential gas supply shortfalls on Australia's east coast in the years ahead, highlighting the importance of careful planning to ensure energy security throughout the transition.
NSW relies on gas from other states. Securing diverse gas supply for NSW will support industry to access reliable, affordable energy sources and help NSW remain a competitive and attractive investment destination.
NSW gas production, alongside investment in import terminals, gas pipeline and storage, renewable fuels, electrification and energy efficiency, will safeguard NSW against supply disruptions.
Earlier this year, the Minns Labor Government announced it would open new areas in the state's Far West for gas exploration. This complements the existing Narrabri Gas Project to help secure a reliable domestic supply for the East Coast. Under the NSW Gas Statement, no new areas will be released for gas exploration.
The NSW Government is committed to maintaining a secure and affordable gas supply wherever it is needed, recognising that different sectors and communities will move through the energy transition at different speeds.
We will also support the uptake of lower-cost and lower-emissions alternatives where they make sense for consumers and businesses, helping reduce energy costs while delivering emissions reductions.
The NSW Gas Statement is available online: www.energy.nsw.gov.au/nsw-plans-and-progress/regulation-and-policy/nsw-gas-statement
Minister for Energy Penny Sharpe said:
"The NSW Government remains focused on ensuring households, businesses and industry have access to the energy they need, while building a cleaner, more resilient energy system.
"Supporting electrification and preserving gas for critical uses gives greater certainty to industry, helps households lower their energy bills, and reduces emissions."
Minister for Natural Resources Courtney Houssos said:
"The Minns Labor Government is taking practical and necessary steps to strengthen the state's gas supply to power our manufacturing sector and back-up the energy grid.
"Releasing these new areas for exploration, to complement the Narrabri Gas Project, supports a domestic gas supply and provides confidence to households and businesses.
"We are supporting workers and businesses in the manufacturing sector that depend on reliable energy for their industrial processes. Gas will continue to play an important role as our state's energy mix changes.
"We are also working closely with the Commonwealth to get the policy settings right to drive investment in and secure the gas supply NSW needs."
