‘Energy challenges’: Premier Chris Minns rules out gas ban in NSW

NSW won’t be following Victoria’s lead as Premier Chris Minns says he isn’t pursuing a gas phase out amid serious state energy challenges.

NSW Premier Chris Minns says ‘we’re facing a situation where we need gas for industry’. Picture: NCA NewsWire / Nikki Short

The Climate Council says it is just a matter of time before NSW follows Victoria in phasing out gas, but NSW Premier Chris Minns insists he will not pursue a ban on gas connections in new homes.

Mr Minns said on Monday that NSW industry needed gas as several coal-fired power plants were slated to close in the coming years and said Victoria produced double the amount of emissions from gas as NSW.

“We’re not pursuing that … the challenges in energy are serious in NSW. I don’t want to lead anyone up the garden path when it comes to that,” he told radio 2GB.

“We’re facing a situation where we need gas for industry. We’ve also got baseload power that’s coming off in the next few years and not enough renewables coming into the system. I don’t need another complication or another policy change when the challenges ahead of us are so serious.”

Mr Minns said about 7 per cent of emissions in NSW came from gas and that households would save between $1000 to $7000 a year if they became fully electric, but he stressed that was a decision for consumers.

Victorian Energy Minister Lily D’Ambrosio announced last week that from January 1 no new homes or residential subdivisions requiring a planning permit will be connected to mains gas – a measure the government claims will save households $1000 a year, or up to $2200 if they have solar electricity installed.

The all-electric requirement will also apply to all new government buildings that have not yet reached design stage, including schools, hospitals, police stations and public housing.

Climate Council councillor and energy expert Greg Bourne said Victoria’s decision was a signal the traditionally gas-intensive state was moving towards renewables as gas fields depleted, which he NSW would eventually follow.

“The smart money is basically moving towards the renewables world and moving away from the fossil fuel world,” he said. “So I think it’s just a matter of time whether it’s politically the right time for Chris Minns, that’s a political decision not a financial decision.”

The production of natural gas in Victoria will fall 49 per cent by 2027, according to the Australian Energy Market Operator, which flagged existing investment in the sector would be required to ensure supply despite falling consumption.

Australian Petroleum Production and Exploration Association chief executive Samantha McCulloch said NSW needed to focus on expediting access to new supply such as fast tracking the Narrabri Project.