Business NSW has welcomed the NSW Government’s decision to open new regions for gas
exploration, warning that soaring prices and insecure supply are putting growing pressure on
businesses across the state.

“Gas is essential for thousands of NSW businesses, particularly in manufacturing, food
processing, hospitality and regional industries, and there is no simple or affordable
alternative,” Business NSW CEO Daniel Hunter said.

“This decision is an important step toward securing domestic gas supply and giving
businesses confidence they can keep operating, investing and employing.”

Business NSW first called for the expansion of the state’s domestic gas supply in 2019 and
reiterated that call in its Running on Empty 2.0 report released in December.

Gas affordability and supply security remain critical issues for small businesses, particularly
in sectors where gas is fundamental to core operations.

Over the past four years, gas prices have risen by 35 per cent for households and almost 50
per cent for business customers, according to IPART.

A Business NSW survey shows nearly one in five NSW businesses depend entirely on gas,
rising to 64 per cent in hospitality.

“Gas prices have climbed dramatically, and that cost pressure hits investment decisions,
hiring and the viability of businesses right across the economy,” Mr Hunter said.

“Ensuring reliable and affordable domestic supply isn’t optional, it’s essential.”

Gas powers more than 1.5 million households and 50,000 small businesses and underpins
entire sectors including manufacturing, food processing and mining.

Many gas‑reliant businesses depend on gas not just for energy, but as a high‑temperature
heat source and as a chemical feedstock for products such as fertilisers, chemicals and
plastics.

Gas is also critical to producing everyday essentials, from food and beverages including
bread, milk, coffee and beer, to plastics, fertilisers, clothing, construction materials and
medical products.

The NSW Government has announced it will open new areas for gas exploration in NSW for
the first time in more than a decade.

Two regions in the Far West, the Bancannia Trough and the Pondie Range Trough, will be
opened for gas exploration.

The Narrabri Gas Project, meanwhile, remains subject to proceedings in the National Native
Title Tribunal.

The NSW Government will also reduce the gas exploration licence application fee from
$50,000 to $1,000.

“Getting supply settings right is critical if NSW wants to remain competitive and protect
regional jobs,” Mr Hunter said.

About Business NSW
Formerly the NSW Business Chamber, Business NSW is the peak policy and advocacy
body which has been