New South Wales to Open Gas Exploration Areas for First Time in a Decade After Supply Warning

Resources Minister Courtney Houssos said current global events make this work more important than ever.

A ship carrying LNG gas is seen at Rio Tinto’s Dampier Port in Karratha, Australia, on April 11, 2025. AAP Image/Lukas Coch

New South Wales will open new areas for gas exploration for the first time in more than a decade, as officials warn of potential supply shortfalls on Australia’s east coast from 2030.

The Minns Labor government will release the Bancannia and Pondie Range Troughs in the state’s far west for petroleum exploration, with expression of interest opening on May 1.

The move has been triggered by warnings from the Australian Energy Market Operator of looming gas supply gaps.

The goal is to boost domestic gas supply and improve long-term energy security for the state.

Courtney Houssos, State Natural Resources Minister, said any new supply would take time to come online.

“We can’t flick a switch and have this come online overnight,” she 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.”

Houssos said global instability had reinforced the urgency of securing reliable energy supplies.

“Current global events make this work more important than ever,” she said.

Fee Cut to Attract Investment

The state will cut the gas exploration licence application fee from $50,000 to $1,000 in a bid to attract new investment.

Any future projects would still face independent planning assessments, environmental protections, and engagement with landholders and Traditional Owners.

Industry groups welcomed the decision, with Australian Energy Producers describing it as a critical step towards improving the state’s energy security.

NSW State Director Peter Kos said opening new acreage could unlock new domestic gas resources.

“Natural gas is essential to NSW’s energy security and economic growth, and we need continued investment in exploration and production to secure our state’s long-term energy needs,” he said.

“The gas industry stands ready to work with the NSW Government to bring new supply online and deliver affordable, reliable and cleaner energy for households and businesses.”

Farmers Concerned

However, farm groups warned that inadequate safeguards could pose risks to regional communities.

NSW Farmers President Xavier Martin warned hasty exploration without strong safeguards could create unmanageable risks for rural and remote communities.

“Farmers are not anti-development, but we are absolutely pro water, pro biosecurity, and pro respect for the people who live and work in the landscape,” Martin said.

“The government must explain how it will prevent a flood of speculators and ‘$1,000 cowboys’ arriving on farms with inadequate resourcing, poor behaviour and little regard for biosecurity or water risk.”

Emeritus Western Sydney University Chemistry Professor Mick Wilson said the decision aligned with longstanding assessments of the state’s petroleum potential and suggested Victoria should follow suit.

“Minns is to allow gas exploration in NSW again. Excellent,” he said.