Page 12 - AsianOil Week 29 2021

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NSW slashes available

exploration acreage

Australia’s most populous state aims to remove
more than 75% of its available exploration acreage

COMMENTARY THE New South Wales government has unveiled a thirtyfold reduction in available exploration
plans to prevent natural gas exploration in a large acreage over a 10-year period. Barilaro said:
portion of the state’s north-western region. “When we came to office in 2011, petroleum
WHAT: Sydney unveiled its Future of Gas Statement exploration titles or applications covered 45% of
NSW wants to shelve blueprint this week, outlining its intent to rule NSW – under our Future of Gas Statement, that
12 expired exploration out gas production from 12 expired petroleum figure has been reduced to just 1.5% of the state.”
licences. exploration licences (PELs). The state govern- The NSW government’s decision puts it
ment dubbed these licences, which cover 55,000 squarely at odds with the federal government,
WHY: square km and represent more than three quar- which continues to champion its plans for a “gas-
The state government ters of the state’s exploration acreage, as “zombie fired recovery”.
has been reducing the PELS”. Australian Prime Minister Scott Morrison
amount of available “We have heard the concerns and questions has advocated for greater domestic production
exploration acreage since from our regional communities around PELs to help reduce local gas prices and thus stimulate
coming to power in 2011. and I can confirm today we are reducing the manufacturing and industry.
area of land available for gas exploration by
WHAT NEXT: 77%,” NSW Deputy Premier and Minister for A question of pricing
Limiting exploration Resources John Barilaro said on July 21. NSW Minister for Energy Matt Kean acknowl-
opportunities will The official noted that the PELs left untouched edge that stable supplies of gas would be key to
increase the state’s would support the “long-term future” of Santos’ the state’s continued economic growth.
reliance on more Narrabri coal-bed methane (CBM) project. The “Gas is an essential source of energy to man-
expansive gas imports. federal government approved the AUD3.6bn ufacture products such as fertiliser and heavy
($2.65bn) project in November 2020, which will construction materials,” Kean said. “The NSW
involve drilling up to 850 gas wells across grazing government is determined to set a clear policy
land and forest. framework to secure supply and put downward
Barilaro said the NSW government also had pressure on prices.”
no intention of releasing new areas for gas explo- The state government has suggested that
ration in NSW, includes areas in the far west of downward pressure on pricing will come from
NSW, near Wilcannia and Broken Hill. the Narrabri project along with proposed lique-
The official celebrated the fact that the ruling fied natural gas (LNG) import terminals at Port
Liberal-National Coalition was set to oversee Kembla and Newcastle.

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