The company behind the PEP11 offshore gas exploration project has told a NSW Parliamentary inquiry that the project could play a significant role in meeting the need for new gas supply for homes and business across the state.
The inquiry came about as a result of an Opposition's Offshore Drilling and Associated Infrastructure Prohibition Bill that seeks to ban offshore coal, gas, mineral and petroleum mining and exploration in NSW waters.
However, it was not clear if the proposed laws were constitutionally sound, thereby creating a risk they could be overruled by the Commonwealth or a legal challenge by proponents.
In its submission to the inquiry Advent Energy, which has an 85 per cent interest in the PEP11 exploration licence, argued that NSW needed the development of new natural gas resources to meet its ongoing demand.
It also said that there was no environmental, safety or other reason to prevent exploration and production occurring in federal waters off the state's coastline.
"More than 3,000 wells have been drilled over the last 60 years, more than 1,000 of which are offshore Victoria - which also boasts some of the country's most productive commercial fisheries, whale nurseries, and a spectacular coast that attracts millions of visitors every year," the submission says.
"Closer to home, people from the Hunter region might remember the gas well which was safely drilled off Nelson Bay in 2010, which caused no negative impacts to the marine environment.
"As stated above, successful gas exploration and production could provide gas to supply NSW homes and businesses for more than 20 years. That would support local jobs and boost local industry.
"Business NSW estimates 250,000 jobs in NSW rely upon gas as a feedstock and energy source - that includes workers at Orica, BlueScope Steel, Qenos, and other companies."
The PEP-11 permit partly overlaps with the new wind zone, but the proposed drilling location sits around it.
"We welcome this declaration because it reinforces our belief that decarbonising the global energy system will require the use of a mixture of technologies, encompassing renewable resources, carbon sequestration and gas," Asset Energy chief executive David Breeze said.
The Parliamentary inquiry committee will table a report on its findings by 21 November 2023.
