Page 4 - GLNG Week 30 2021

GLNG COMMENTARY GLNG

NSW slashes available

exploration acreage

Australia’s most populous state aims to remove more than

75% of its available exploration acreage

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

P4 www. NEWSBASE .com Week 30 30•July•2021