The Perrottet government will rewrite planning laws to permanently block offshore gas drilling along the NSW coast.
It comes after the Federal Court quashed former prime minister Scott Morrison's decision to block an extension of the PEP-11 permit, reopening the door to potential gas drilling across a large stretch of NSW waters.
The PEP-11 permit covers a petroleum well along the NSW coastline between Wollongong and Newcastle, covering about 8200 square kilometres.
The court's ruling returns the decision-making power on whether the area can be drilled to the NSW and federal governments, and the holder of the PEP-11 permit, Asset Energy.
The lead up to the court's decision launched a wave of opposition across the political spectrum in NSW, with Labor, the Greens and independent MPs voicing their opposition to the permit.
Energy Minister Matt Kean said the Liberal-National coalition was gravely concerned about the environmental impact of the project and had consistently opposed it.
"That is why we are legislating our long-held policy on offshore gas mining in NSW waters," Mr Kean told reporters at Mona Vale on Sydney's northern beaches on Wednesday.
The plan includes converting existing policy preventing coal, gas, mineral and petroleum mining off the coast into law, and lobbying the Albanese government to adopt similar legislation.
The plan is contingent on the government winning a fourth term in office on March 25.
"The NSW Liberal and Nationals will always stand up for the environment and our communities that care deeply about our pristine coastline," Mr Kean said.
"Today we call on the Albanese government to back our plan, and ban the drilling for offshore gas in commonwealth waters as well.
"They are the ones who have reopened this issue."
Mr Kean's calls were backed by the state's environment minister, Manly MP James Griffin.
"We have some of the most unique and pristine environments up and down the NSW coast," Mr Griffin said.
"It's a very, very unique ecosystem that deserves all the protection it can get.
"The next steps are simple; the Albanese government needs to step up and ban offshore drilling and mining in Commonwealth waters."