CSG exploration and extraction has been controversial in New South Wales
CSG exploration and extraction has been controversial in New South Wales

NSW restarts CSG battle it just lost to provide local gas

THE New South Wales Government has been labelled short-sighted over a plan to unlock new coal seam gas reserves to local mining companies that will supply into local markets rather than export.

Mining Minister Anthony Roberts said the state last year came within a hair's breadth of "catastrophic" gas shortages because of the lack of a local supply.

Public outcry and protests led to the abandonment of several CSG projects last year, with more expected to follow suit in the coming months.

The new plan would favour NSW companies that reserved gas for domestic use rather than Asian export. The state only produces 5% of the gas it uses.

Labor has slammed the plan, saying renewables should be given preference until all the NSW Chief Scientist's recommendations on reforming the CSG industry are implemented.