Parts of New South Wales’ Far West will be available for gas exploration for the first time in more than 10 years.
The state government has approved opening the Bancannia and Pondie Range Troughs for new gas projects.
Companies will be invited to make an expression of interest (EOI) in gas and petroleum exploration licences. The three-month NSW Resources EOI application period will open on 1 May 2026.
The government will also reduce the gas exploration licence application fee by 98% from $50,000 to just $1,000.
These measures are promised to “attract investment” and ensure that the First State stays “competitive” with other states and territories.
They are also hoped to provide backup power sources in the event of low renewable energy generation levels.
The Australian Energy Market Operator warned earlier about potential supply gaps across the East Coast. A 2021 independent recommendation also supported the state government opening more gas exploration areas.
Prospective gas projects will still be subject to independent planning assessments. Projects must meet strict environmental protection and comprehensive engagement requirements with local communities, landholders, and traditional landowners.
No gas exploration will be allowed in national parks, and production must be consistent with meeting state emissions targets.
“We cannot flick a switch and have this come online overnight … [and] what we need to do, carefully and methodically, is make sure we are responsibly pulling every lever to support a stable and robust energy grid for decades to come — current global events make this work more important than ever,” state Natural Resources Minister Courtney Houssos says.
“In a time of great uncertainty, we are backing local industry and ensuring NSW remains competitive and resilient in increasingly volatile global markets,” state Industry and Trade Minister Anoulack Chanthivong adds.
The Australian Workers Union (AWU) hopes more gas will be reserved for domestic consumption.
“[The] government is showing leadership by acting now to strengthen NSW’s gas position and ensuring any new production goes to Australian users rather than straight onto a ship — that is the model the nation needs to build on,” AWU state Secretary Tony Callinan says.
Australian Energy Producers (AEP) believes that producing more domestic gas is an important step in addressing the energy crisis.
“We need continued investment in exploration and production to secure our state‘s long-term energy needs,” AEP state Director Peter Kos says.
Business NSW estimates that gas powers more than 1.5 million homes and 50,000 small businesses and underpins mining, manufacturing, food processing, and other sectors.
Write to Richard Szabo at Mining.com.au
Images: New South Wales Resources Regulator
