National

New gas fields to be explored to shore up power supply

Apr 29, 2026

gas — Gas industry lobbyists have been promoting use of the fuel and its benefits to the national economy. -AAP Image

Applications to search for natural gas in one state will be accepted for the first time in a decade as the fear of energy shortfalls outweighs environmental concerns.

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The NSW government announced on Wednesday it will open two regions in the state's far west for gas exploration.

Bancannia and Pondie Range troughs, north of Broken Hill, will be opened for gas project applications to complement the existing Narrabri Gas Project.

The government says the move is necessary to ensure reliable power in the coming decades, with the Australian Energy Market Operator forecasting gas shortfalls across the east coast.

Gas is used in homes, industry and to firm up the electricity grid when solar and wind output is low, Natural Resources Minister Courtney Houssos said.

"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," Ms Houssos said.

"Current global events make this work more important than ever."

The fee to apply for an exploration licence will also be slashed from $50,000 to $1000 in an effort to attract investment.

Ms Houssos said any prospective project would still be subject to independent planning assessment, including consultation with traditional owners and being consistent with the state's emissions targets.

The government's progress towards its emissions reduction targets for the next two decades have been under scrutiny since coal mine expansions were locked in for another 25 years.

NSW aims to cut emissions to 50 per cent of 2005 levels by 2030 but this can only be achieved through further decarbonisation of the state's power supply, the independent Net Zero Commission says.

The licence for a large coal mine in the Lake Macquarie region was extended until the end of 2029, which was slammed as likely unlawful by Greens MP Sue Higginson.

But supporters of the expansion of gas exploration say without boosting onshore production, emissions would simply be generated overseas.

"Energy-intensive manufacturers across NSW depend on reliable and affordable gas. Without it, jobs go offshore and emissions go with them," Australian Workers Union NSW secretary Tony Callinan said.