Narrabri project central component in NSW Gas Statement

The proposed Narrabri gas project will remain a key part of the NSW government’s strategy to secure domestic gas supplies, with the state’s new gas statement outlining the role of local production in supporting manufacturing and the transition to a lower-emissions energy system.

Earlier this month, the state government released its NSW Gas Statement, setting out its approach to maintaining a secure and affordable gas supply as ageing coal-fired power stations are progressively replaced by renewable energy, supported by storage and gas-fired generation.

The statement identifies the Santos project as an existing development that could help secure reliable domestic gas supplies for the east coast, as the state looks to reduce its reliance on gas sourced from other jurisdictions.

The government said forecasts from the Australian Energy Market Operator indicated potential gas supply shortfalls on Australia’s east coast in the coming years, highlighting the need to diversify supply and plan for future demand.

Earlier this year, the government announced plans to open new areas in NSW’s Far West for gas exploration, complementing the Narrabri project.

However, under the newly released gas statement, no additional areas will be released for gas exploration.

The government said domestic gas production, alongside investment in import terminals, pipelines and storage, renewable fuels, electrification and energy efficiency, would help protect NSW against supply disruptions.

Minister for Natural Resources Courtney Houssos said the government was taking steps to strengthen gas supplies for manufacturing and electricity generation.

“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,” Ms Houssos said.

“Releasing these new areas for exploration, to complement the Narrabri gas project, supports a domestic gas supply and provides confidence to households and businesses.

The state government published this map of pipeline systems and gas-fired power stations as part of the document.

“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.”

Minister for Energy Penny Sharpe said the government wanted to ensure households, businesses and industry had access to the energy they needed while building a cleaner and more resilient energy system.

“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,” Ms Sharpe said.

“Supporting electrification and preserving gas for critical uses gives greater certainty to industry, helps households lower their energy bills, and reduces emissions.”

Following the release of the NSW Gas Statement, Lock the Gate Alliance said the state government had failed to listen to community concerns about proposed gas projects, which will prolong uncertainty and pain for North West communities.

Liverpool Plains farmer Margaret Fleck said the process had made clear that the state government is prioritising the interests of the gas industry above local communities.

“Proposed gas projects across regional NSW would affect thousands of farmers and Traditional Owner groups including Gomeroi and Barkandji, but the NSW government only met with one Aboriginal group and two farming groups,” she said.

“Concerns raised by affected landholders were not addressed in the policy. For example, there is a major risk that landholders hosting coal seam gas infrastructure will not be able to secure public liability and home insurance. This is an enormous risk to farmers, and the NSW government has ignored it.”