PERTH (miningweekly.com) – The Australian Petroleum Production and Exploration Association (Appea) has called on the New South Wales government to lift restrictions on natural gas exploration and production after the Australian Energy Market Operator (AEMO) warned about possible shortfalls in supply.

In its '2013 Gas Statement of Opportunities' report, AEMO warned that if current gas production in Queensland and South Australia were prioritised for export, there would be flow-on effects to New South Wales, with potential shortfalls of between 50 TJ/d and 100 TJ/d over winter peak demand days from 2018.

Committed and advanced projects in New South Wales are not sufficient to completely alleviate these shortfalls without further support from the Moomba–Sydney Pipeline.

The AEMO stated that opportunities existed to augment transmission capability between Victoria and New South Wales, increase production in the Cooper basin, undertake moderate development of the Gunnedah basin, or develop an alternative transmission route between Queensland and New South Wales.
 
Appea’s CEO of Eastern Australia, Paul Fennelly said that now was not the time to be saying no to natural gas development.

“This report shows that committed and advanced gas projects in New South Wales are not sufficient to completely alleviate potential supply shortfalls.

“There are serious consequences awaiting New South Wales households and businesses if restrictions on gas exploration and production are not lifted immediately by the New South Wales government," he said.

Fennelly found it "absurd" that the state continued to get 95% of its natural gas from other states despite abundant reserves that could be sourced safely just as it has in western Sydney for more than a decade.

The New South Wales government has been looking at alternative sources of natural gas, with the state’s chief scientist and engineer, Mary O’Kane, recommending that the state take steps to support the development of coal seam gas in the region.