Queensland drilling equivalent of Narrabri gas project every year as shortage looms

As a looming gas shortage hovers over Australia’s east coast, new figures show how far behind NSW has fallen.

NSW is falling drastically behind in the drilling of new gas wells compared to other states, amid warnings of a looming east coast energy crunch as soon as next winter.

New figures show NSW has been outstripped by Queensland when it comes to new gas projects being started, with the northerners drilling nearly the equivalent of a Narrabri gas project every year.

It comes as Australia stares down the barrel of a domestic gas crisis amid forecasts the energy source could have to be imported for local use within years – a scenario one expert said was akin to “Antarctica importing ice”.

New industry figures show that in NSW just five wells were drilled in 2013, 17 in 2014, and one in 2020. Meanwhile, Queensland has drilled an average of 730 coal seam gas wells a year since 2016.

A Santos Ltd pilot well on a farm in Narrabri. Picture: Brendon Thorne/Bloomberg

Santos’ long-delayed $3.5bn Narrabri gas project – which will produce gas for domestic use – involves a maximum of 850 wells, just over the amount being laid every year in Queensland.

Earlier this year the Australian Energy Market Operator (AEMO) forecast that within a few years supplies of gas on the east coast could fall short during winter.

There was also a renewed warning from the Australian Competition and Consumer Commission this week, stating gas supplies are expected to tighten ahead of next winter.

It’s left Australia facing the prospect of importing gas within years, a scenario which was “ridiculous” given our role as a major exporter of the product, according to The Australia Institute research director Rod Campbell.

“Australia is the third largest exporter of (liquid natural) gas and the idea we would import it is like Antarctica importing ice,” he said.

He said the pivot to export in the early 2000s had locked Australia into a position where it was exposed to worldwide prices, as well as foreign demands for Aussie gas.

“We’re not running out of gas, we’re rolling in gas. But there is a legitimate question about how do we get the amount of gas needed, to the places it’s needed, at the times it’s needed,” he said.

Australian Energy Producers NSW director Peter Kos said the industry figures showed the need for a shift in government approvals.

Premier Chris Minns. Picture: NewsWire/Gaye Gerard

“It’s important we get more gas online – there’s 250,000 jobs in manufacturing in a job requiring gas,” he said. “The federal government has clearly stated gas will be an important part of energy security … so it’s important the processes are there to allow (new projects).”

Premier Chris Minns has previously thrown his support behind the Narrabri project, saying industry “needs new sources of energy”.

Santos’ Narrabri project has faced years of delay, including a lengthy Native Title court case, with the state government saying it is waiting on a final investment decision.

A government spokesman said the state was forging ahead with other exploration for critical minerals, but we have less gas than Queensland.

Do you have a story for The Telegraph? Message 0481 056 618 or email [e-mail]

Originally published as Queensland drilling equivalent of Narrabri gas project every year as shortage looms