NSW will cancel coal seam gas exploration licences applications covering 43 per cent of the state as part of a new plan to regain community support for a few carefully vetted strategic projects.

In an attempt to take the heat out of the CSG issue before the state election in March, NSW Energy Minister Anthony Roberts and Deputy Premier Troy Grant released a NSW gas plan that they promised would stop the “cowboy" approach to development but also ensure projects that met higher environmental standards could proceed. “We have to stop everybody shouting at each other," Mr Grant said.