According to Sydney Morning Herald, Roberts said growth of the CSG industry was a key solution to the state's energy supply problems.

"The importance of growing the natural gas industry in NSW is fundamental to this state's future economic viability but also [to] driving the prices of gas down where we can through increase of supply," Roberts reportedly said.

In his press statement on the government’s plans to scrutinise retail gas pricing, Roberts avoided mentioning “CSG” but did reveal that gas retailers AGL, Origin Energy and ActewAGL aimed to increase prices by 15.9-20.3%, or $3-4 per week, for most customers in the next financial year.

Roberts said the retailers highlighted the impact of the federal carbon tax on gas prices for households and businesses.

“If Labor’s carbon tax is removed by 1 July 2014, retailers expect there will be a saving for consumers of between 5 [and] 9% from their proposed prices,” he said.

“According to the retailers, more than half of the proposed gas price increase is due to the wholesale cost of gas, while an increase is being sought due to network charges approved by the Australian Energy Regulator in 2011.”

Roberts said the state was at the mercy of gas market prices as it only produced 5% of its own gas.

“This is why the NSW government is working with communities and the industry to establish a safe and environmentally sustainable gas supply for NSW residents, businesses and manufacturers,” he said.

Greens NSW spokesman Jeremy Buckingham – who believes that conventional gas from South Australia and Victoria’s Bass Strait should be reserved for NSW during its “transition” to renewable energy – was not pleased with the new minister’s position.

“The minister today has shown his hand and it is clear that he plans to keep rolling out the same short-sighted self-interested lines that the gas industry peddles with little regard for the impact on communities,” Buckingham said yesterday.

“We do not need coal seam gas and communities have made it clear that they do not want coal seam gas.”

Former resources and energy minister Chris Hartcher resigned in December after Independent Commission Against Corruption investigators raided his office.

Last year Hartcher faced industry criticism for enforcing CSG exclusion zones and even more criticism from environmentalists for not doing more to limit CSG exploration.

A briefing document for Hartcher was even leaked by a green group in September.

The memo advised Hartcher not to ever use the terms “coal seam gas” or “CSG” and instead use the term “natural gas from coal seams”.

The Independent Pricing and Regulatory Tribunal will issue a draft report and conduct an open hearing over the submissions to raise gas prices in April.

A final report is expected in June with the price changes expected to take effect in July.