A landmark agreement between the Australian and New South Wales governments is set to facilitate increased gas supply, lower emissions and a more stable power supply.
Both governments have committed to deliver a number of initiatives through the partnership, aiming to increase gas and electricity supply in NSW by encouraging investment.
It will also work to improve grid security by supporting transmission interconnection and network access and support emissions reduction projects that deliver genuine abatement.
The deal, worth more than $2 billion deal includes funding for a number of initiatives and projects.
Prime Minister Scott Morrison said the deal is the first of a series of state bilateral energy agreements between the Federal Government and state and territory governments.
The Australian Petroleum Production & Exploration Association (APPEA) welcomed the energy accord as an important step.
APPEA said the deal underlined the importance of developing the state’s significant natural gas resources for the benefit of its homes and businesses, and in lowering emissions from the state’s coal-dependent electricity grid.
The oil and gas lobby group said the Narrabri Gas Project, which is still awaiting final environmental approval after years of assessment, could deliver up to 50% of NSW gas needs. The operator of the project, Santos, has pledged to deliver all of the project’s gas supply to the domestic market.
APPEA Chief Executive Andrew McConville said the economic case for developing local gas resources is irrefutable – well-paid and secure local jobs, state royalties, more secure supply and downward pressure on gas and electricity prices.
“If industry can further explore and develop gas resources with governments allowing proper environmental assessment and approvals processes to occur, Australia can continue its shift to a lower carbon, sustainable energy economy,” he said.
It followed the earlier release of the Federal Government’s review of the Australian Domestic Gas Security Mechanism (ADGSM), confirming actions by the oil and gas industry to bring more gas into the domestic market have boosted Australia’s domestic supply.
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