“NSW, in particular, relies on other states for 95 per cent of its supply when it has far more cost-effective alternatives to meet gas demand much closer to where it’s needed most.
Last month, the Productivity Commission found that removing regulatory burdens that restrict exploration and production of natural gas, particularly in Victoria and NSW, would not only allow the market to work more efficiently and effectively, but would also bring on more gas supply.
In addition, the Australian Government’s Energy White Paper (read more about it here) released last week found that tightening supply in Australia’s gas market is exacerbated by barriers to new onshore gas production.
“Keeping in mind that gas projects take years to reach commercial production, planning for the state’s long-term energy needs remains paramount. Projects in NSW currently in the early stages of development could meet up to 65 per cent of the state’s domestic gas demand,” APPEA added.