The report committee found there would be an increased demand for gas-fired generation in the future as the state transitions to lower carbon emissions.

This increased demand – along with factors such as dwindling supply of conventional gas and moves towards international price parity – are expected to put pressure on conventional gas prices and, as a result, the cost of electricity.

It therefore found that the development of NSW’s significant CSG resources had potential to ease some of these pressures.

It said CSG had the potential to increase energy security and affordability in New South Wales, as well as provide it with other economic benefits associated with the development of a new industry.

The committee also rejected the concept of a domestic gas reservation policy, saying this would “inappropriately interfere” with the operation of the gas market.

The recommendations of the report were music to APPEA’s ears, which broadly supported it.

“The release of this report highlights the importance of gas production to the future of NSW,” APPEA’s eastern chief Rick Wilkinson said.

“If there is to be downward pressure on rising electricity prices then sourcing natural gas from coal seams could be the game changer.

“Not only will we see the creation of thousands of jobs, as has happened in Queensland, but regional economies will also be revitalised.”

It also called on the NSW government to start a “public education campaign” about CSG, a move which also welcomed by APPEA.