Strategic opportunities for gas in regional NSW

The NSW Government is committed to ensuring NSW regional industries are supported by a diverse energy mix. Alongside other energy sources, gas will play an important role in maintaining downward price pressure on energy costs and ensuring security of supply.

Affordable energy, backed by safe and sustainable domestic gas production, is important to support NSW industry and help drive economic recovery in regional NSW.

Manufacturing, backed by access to affordable and reliable energy, presents a key opportunity for regional growth and job creation. Manufacturing industries such as food and meat processing, and production of plastics, fertiliser and construction materials require gas for process heat or as a chemical feedstock. For these industries to survive and prosper, access to secure, long-term, affordable gas supply is essential.

Why we need to act now

The Australian Government has highlighted the importance of gas for post COVID-19 economic recovery. Strengthening our domestic supply chain and boosting manufacturing capacity will create more regional jobs now and into the future. 

Secure, accessible gas supply is an important part of the energy mix.

Increasing the supply of gas from a range of sources including domestic production, pipelines and Liquid Natural Gas (LNG) imports will provide  affordable, accessible gas over the long term. The approval of the Narrabri Gas Project increases NSW’s security of supply and meets up to 60 per cent of current NSW demand.

Opportunities for regional economies

The NSW Government will focus on ensuring the full range of benefits additional gas supplies can deliver are realised across the state. This will include identifying and facilitating opportunities in regional NSW for more affordable gas and better supply certainty to underpin new investment and employment opportunities.

It will incentivise energy-intensive industries to build a presence in regional areas, supported by key regional infrastructure such as inland rail and industrial activation precincts. The potential Special Activation Precinct being investigated in the Narrabri area will leverage the recently approved Santos Gas Project, maximising the economic potential for energy-intensive industries and other gas-enabled manufacturing sectors by being close to commercial quantities of gas.

The NSW Government is scoping investment opportunities to support the market over the long term. This includes releasing a comprehensive strategy and action plan to support the domestic gas market in mid-2021.

Read the Strategic Opportunities for Gas in Regional NSW statement (PDF, 370.16 KB)