Australia’s New South Wales on Wednesday announced its first gas exploration permits in a decade, significantly reducing application fees to encourage renewed activity in the domestic energy sector.
The state government lowered fees from A$50,000 to A$1,000 and opened two frontier sites in its western region, aiming to strengthen long-term energy supply amid global market uncertainty.
Natural Resources Minister Courtney Houssos said the move was part of a careful strategy to ensure a stable and resilient energy grid, noting the continued importance of gas for heating, manufacturing, and electricity generation.
The decision comes despite data from the Australian Energy Market Operator showing gas use in power generation has dropped to a two-decade low.
Officials say the policy is also driven by forecasts of potential gas shortages along Australia’s east coast before the end of the decade.
However, the plan has drawn criticism from farming and environmental groups, who raised concerns about land use, water safety, and the risk of speculative operators entering rural areas.
Industry bodies and business groups, on the other hand, welcomed the initiative, citing the need for reliable and affordable gas to support production and economic competitiveness.
The move aligns New South Wales with other states such as Queensland and Victoria, which have recently offered new exploration acreage to bolster energy security.
Major energy players including Shell, ConocoPhillips, and Santos remain central to Australia’s gas industry, particularly through liquefied natural gas operations.
Separately, Tania Archibald of BlueScope said manufacturers require greater gas supply and lower prices to stay competitive and transition toward lower-emissions production.