A controversial gas drilling project proposed just off the NSW coast has been blocked by a joint federal and NSW state panel, with federal Minister for Industry and Science Ed Husic citing public interest and doubts about the companies’ ability to fund the work.

The decision to refuse the applications for the PEP-11 offshore exploration permit comes as south-east Australia is facing looming shortages of domestic gas, meaning the region is expected to start relying on LNG imports within the next few years.