Jobs hinge on fixing gas supplies
One of the measures proposed is to force gas producers to set supplies aside to protect local consumers, as a last resort.
"NSW isn't simply looking at gas supply," NSW Energy Minister Chris Hartcher said. "It is looking at increasing the competition in gas supply."
Mr Hartcher was speaking before an energy summit to be held in Sydney on Thursday, with federal Energy Minister Ian Macfarlane to attend, along with members of business lobby groups and energy specialists.
Gas prices are forecast to double over the next few years as prices on the east coast rise towards international levels.
"The failure to develop affordable gas is a very real threat to future employment," Mr Hartcher said. "There is a lot of anecdotal stories of people threatening job losses and threatening relocation, to China or to Victoria. It is building up a head of steam."
Earlier this year, Incitec Pivot opted to build a new plant in the US to access cheap gas prices rather than invest in Australia due to concerns over rising gas prices.
"The problem isn't the lack of gas," Mr Hartcher said. "The problem is the future affordability - that's the real challenge. We have to ensure that there is not just the supply but there is sufficient competition in the supply ... especially for manufacturing."
The domestic gas price is rising "and will continue to move unless we can address this issue. That's the urgency of it."
The NSW government is to finalise regulations over the next few weeks which will clarify details of the planned two-kilometre exclusion zone between urban areas and coal seam gas exploration and development, along with detailing zones around the wine and equine industries in the Hunter to ensure their operations are not compromised.
Detailed planning controls for wind energy will not be clarified until next year.
"Like coal seam gas, wind has had a failure to develop community acceptance, and we've got to look at alternative areas or better community engagement," Mr Hartcher said.
"This is not the government's problem alone. Sure, the government's got a major role to play but it is a problem for industry and it's a problem for unions as well."
Frequently Asked Questions about this Article…
The article says NSW warned of heavy job losses unless it can boost competition in gas supplies. The concern is that rising east-coast gas prices — driven higher as Queensland finalises a series of export projects — could make local manufacturing and industry less competitive and prompt job relocations.
NSW is proposing measures that could include forcing gas producers to set supplies aside for local consumers as a last resort. The government is also finalising related regulations over the next few weeks to manage supply and protect local users.
The article reports gas prices are forecast to double over the next few years as east-coast prices move toward international levels. For investors, that can increase costs for energy‑intensive businesses, squeeze margins, and raise the risk of plant relocations or reduced local investment — all factors that can affect company profits and share prices.
According to the article, Incitec Pivot built a new plant in the US to access cheaper gas prices rather than invest in Australia because of concerns about rising domestic gas costs. For investors, this highlights how energy costs can drive corporate investment decisions and potentially affect the growth outlook for Australian operations.
NSW plans to finalise regulations detailing a two-kilometre exclusion zone between urban areas and coal seam gas exploration and development. It will also define zones around the Hunter region’s wine and equine industries to ensure those operations aren’t compromised — changes that could constrain where exploration can occur.
The article notes that detailed planning controls for wind energy won’t be clarified until next year. The Energy Minister said wind, like coal seam gas, has faced a failure to develop community acceptance and that authorities are looking at alternative areas or better community engagement — a signal that wind projects may face planning and social hurdles in the near term.
An energy summit in Sydney will bring together NSW and federal Energy Ministers (including Ian Macfarlane), business lobby groups and energy specialists to discuss the issue. Investors should watch the outcomes of that summit, the final regulations NSW is due to release in the coming weeks, and progress on Queensland’s export projects that are pushing prices higher.
The article highlights several risks: rising domestic gas prices that could double in coming years, potential relocation of manufacturing to cheaper jurisdictions, limited competition in gas supply, and planning or community‑acceptance constraints on gas and wind projects. These factors can affect costs, capital investment decisions and long‑term profitability for affected companies.
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