CSG freeze extended for a year

NSW Resources and Energy Minister Anthony Roberts said more time was needed to examine the application process for CSG tenements.

The gas lobby hit back at the freeze, warning gas prices could rise as a result.

“New production depends upon successful exploration activity. And without new exploration and production in NSW, it will be very difficult to put downward pressure on NSW gas prices,” the Australian Petroleum Production and Exploration Association said.

CSG exploration applications have come under heavy criticism in NSW.

In March, Mr Roberts said the exploration application process “was not up to scratch”.

Today he pointed the finger at the former Labor government.

“The former Labor government handed out 39 Petroleum Exploration Licences in a careless and clumsy fashion with little oversight. NSW deserved better,” Mr Roberts said.

Mr Roberts has refused 10 exploration applications since the initial ban, criticising one company’s application as “manifestly deficient” and questioning the credentials of others.

Existing exploration licenses are not affected by the ban, including the State’s two most prominent players – AGL and Santos.

The freeze on new applications comes amid warnings from the federal government of a looming gas shortage in NSW. Federal Industry Minister Ian Macfarlane said the State would run short by 2016.

However, Mr Roberts said NSW would work to boost its supply despite the ban.

“The NSW government is committed to increasing our domestic supply of gas and is working to ensure only safe and sustainable gas supply projects proceed,” he said.

APPEA said the timing of the announcement was “extraordinary”.

“It appears the announcement is set to be made just days ahead of the NSW Chief Scientist’s report into the science of gas development in NSW – sending a message to industry and third parties that such policy announcements are made independent of scientific consideration.”