SMH 19.5.15 by Angela Macdonald-Smith and Ben Potter We've done...

SMH 19.5.15 by Angela Macdonald-Smith and Ben Potter

We've done all we can on CSG:Macfarlane

Coal Seam Gas (CSG) has been the subject of an "unnecessary scare campaign" that has misserved local communities but the federal govt can do little to change the way it operates in NSW, Industry Minister Ian Macfarlane says.

"In the end its up to state govt, " Mr Macfarlane said after addressing the annual Australian Petroleum and exploration Association conference in Melbourne on Monday.

"Theres not much more we can do in the end. As was the case in QLD, its a case of getting community acceptance. Bearing in mind that the tightness in the gas market in NSW has been predicted at this conference by me for at least 5 years, I think we, the Commmonwealth, have done all we can."

The federal govt would continue to work with the states on gas and advancing the proposed pipeline to link the NT into the eastern states gas grid.

Mr McFarlane noted that in the recent NSW election, no seats with CSG in them had changed hands to the Greens or the LaborParty.

"The NSW govt has a process theyre going to work through that process but, if the argument is based around science and fact, NSW will follow QLD and see $60 billion worth of investments and 31,000 jobs, and 5000 farmers who are much richer than they were before they signed up coexistence agreements on coal seamgas."

He said market reforms planned in the gas sector would improve access to pipelines and allow for gas to be traded more easily, helping address potential shortages looming on the east coast.