Australia’s New South Wales to Open New Gas Exploration Sites for First Time in a Decade

(Bloomberg) -- Australia’s New South Wales state will open new areas for gas exploration for the first time in more than a decade, to shore up energy security ahead of shortfalls on the country’s populous east coast.

Two regions in the state’s far west — the Bancannia Trough and the Pondie Range Trough — are open for prospecting, the NSW government said in a statement on Wednesday. Exploration license application fees will be cut to A$1,000 ($716) from A$50,000 to attract interest, it said.

The move highlights the challenge for the federal government as it tries to balance supply risks and targets to cut emissions, which it’s in danger of missing. There’s a need for additional natural gas supply from 2030 as fields on the east coast rapidly deplete, the Australian Energy Market Operator said in a report last month.

Industry lobby group Australian Energy Producers welcomed the move, calling it a “critical step” toward strengthening the state’s future energy security. The NSW government will open an Expression of Interest process for exploration licenses from May 1, AEP said.

The state government said any projects would still face planning approvals and environmental assessments. About 40% of New South Wales’ gas demand comes from industry, and the fuel continues to play a role in firming the grid alongside growing renewable generation, it said.

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