The company behind a proposal to explore for gas off the Hunter coast says it has not given up on its controversial plans despite new obstacles.
The state government recently introduced legislation banning offshore petroleum drilling projects, such as PEP11, in NSW coastal waters.
The legislation was driven, in part, by a significant public backlash against the PEP11 project in recent years.
Advent Energy is reviewing the legislation, which applies to coastal waters three nautical miles (5.5 kilometres) offshore.
While the PEP11 exploration zone extends from Port Stephens to south of Sydney, the area where Advent Energy wants to target for gas deposits is in Commonwealth waters 26 kilometres off Lake Munmorah.
Advent Energy's managing director, David Breeze, told the Newcastle Herald that the company remained committed to its plans.
"We are still proceeding with the application that we have before the National Offshore Petroleum Titles Administrator and the Commonwealth-New South Wales Offshore Petroleum Joint Authority," he said.
Mr Breeze said the company maintained its position that PEP11 was urgently needed to provide energy security to the eastern states.
"The need for gas has become much more critical," Mr Breeze said.
"Gas in NSW in the last few weeks has gone from $15 a gigajoule to $19 a gigajoule."
Mr Breeze cited several large businesses that had closed recently because of the high cost of energy.
"The failure of the gas policy is affecting jobs and it's affecting homeowners," he said.
"NSW is suffering the highest rate of business insolvencies relative to past times, inflation is still at a high and the cost of energy is a key point there. It's critical that this project proceeds."
The PEP11 project was sensationally stopped late in 2021 when former prime minister Scott Morrison intervened directly to override then resources minister Keith Pitt.
Asset Energy is waiting for its permit to return to the joint panel under the NSW government and the federal government.
Federal Resources Minister Madeleine King last month passed responsibility for determining the PEP11 project to Industry and Science minister Ed Husic.
"The Australian Government has been consistent in its position that it will not provide a running commentary on PEP11, and this remains the case," Mr Husic said.
As part of its submission to the NSW Parliamentary Inquiry that led to the ban all new offshore oil and gas and associated infrastructure in NSW waters, Advent Energy highlighted research that showed significant community concern about the impact of gas shortages and support for PEP11.
The Surfers for Climate group has hit back with a survey of 1300 people across Australia. Its survey found 98 per cent of respondents "strongly supported" the legislation banning offshore gas exploration.
