NSW opens new areas for conventional gas exploration

PERTH (miningweekly.com) – The New South Wales government has announced plans to increase conventional gas exploration in the state by releasing new areas for exploration.

Resources and Energy and Utilities Minister Don Harwin said on Tuesday that the release of the new exploration areas, which would be done under the government’s Strategic Release Framework in the New South Wales Gas Plan, would be in areas that did not raise a conflict between gas exploration and the local community.

Areas for potential release would focus on conventional gas opportunities only, with Harwin ruling out any coal seam gas exploration. Any potential exploration projects would also be subject to a rigorous regime that would place communities and the environment first, the Minister said.

“When we released the New South Wales Gas Plan last year we said we would pause, reset and then recommence gas exploration on our terms,” Harwin said.

“With all 17 actions of the gas plan completed, government is able to consider on a case-by-case basis the responsible development of the gas industry in New South Wales.”

Geologists have identified the Bancannia Trough, north of Broken Hill, and the Pondie Range Trough, north of Wilcannia, for initial assessment by independent expert group the Advisory Body for Strategic Release.

These two areas show good potential for conventional gas resources and are located away from prime agricultural land and residential areas, the Minister said.

He added, however, that the Advisory Body would conduct a further assessment of the areas to consider the social, environmental and economic impacts of exploration and would undertake consultation with local communities to determine the areas' suitability for exploration.

Meanwhile, the much maligned Narrabri gas project, being developed by oil and gas major Santos, is also under consideration as a strategic project as part of the New South Wales Gas plan.

Santos in February this year submitted a development application and environmental-impact statement for the proposed project, which could supply up to 50% of the state’s gas needs and could create 1 300 jobs during the initial construction phase, and some 200 ongoing jobs.

The Australian Petroleum Production & Exploration Association (Appea) has welcomed the state government’s move, with CEO Dr Malcolm Roberts expressing the hope that the decision signalled the recognition that developing local gas supply is essential for New South Wales.

“For three years, gas development has been suspended in New South Wales. During that time, customers have faced rising gas prices and tightening supply. We now have the unsustainable situation where New South Wales produces just 3% of its gas needs, leaving local customers to pay a premium to obtain interstate gas.

“That situation puts at risk the jobs of the 300 000 people working in gas-dependent industries in New South Wales. Gas is not just energy for industry, it is also an indispensable part of many manufacturing processes, as a feedstock or fuel,” Roberts said.

He added that if the government and the opposition in New South Wales wished to protect these jobs and create jobs, they should support responsible development of the state’s gas resources.

“Scare campaigns by activists opposing the gas industry have undoubtedly created fear.  And we can guarantee that we will hear more of the same. Their ultimate aim is to ban all natural gas development, not just hydraulic fracturing or coal seam gas.

“But it has been almost three years since the New South Wales Chief Scientist confirmed that the state’s gas resources can be safely developed. In the meantime, other states have continued to develop their gas resources safely, creating jobs, investment and infrastructure for regional communities.”