NSW is missing out on potentially billions of dollars of investment and thousands of new jobs by failing to embrace the state csg sector.
Rapid emergence of csg in QLD has the state eyeing $50 billion investment in coming years.
NSW's geology is considered to be as prospective at QLD but companies active in NSW say problems with the state's approval process and a lack of government support have left them in QLD's wake.
Glenda McLoughlin from Metgasco says her company has been forced to burn off gas while it waits for a permit upgrade.
"we're not allowed to do anything with it," she said.
"We've got customers about a kilometre away who want to buy the gas but we can not get the production lease out of the department."
The contrast in states is particularly stark for those such as AGL Energy managing director Michael Fraser and former Arrow Energy chief Shaun Scott, who have been involved inQLD and NSW.
AGL turned it attention to NSW afer selling out its QLD gas company for a big profit and acquired Sydney Gas in late 2008.
Fraser admits progress in NSW has been slow compared to QLD.
"Let's face it, the industry is relatively new in NSW compared to QLD," he said.
"But we think there are some improvements which can be made in NSW that would streamline the process but at the same time provide the appropriate protection for the environment and for land holders.
Scott from Dart Enerty also concurs that the approvals process in NSW takes longer.
He says you only have to look at the momentum that's happened in QLD to see what coal seam gas can do.
Santos chief David Knox says his company has been able to work effectively within NSW, although he notes that operating in the state is not without its hurdles.
"One of the challenges in NSW Gunnedah Basin is it is quality farmland," Knox says.
"We've had to respond very carefully to the responses to the community, but to date we been able to execute the program we've wanted to execute."
It goes on to say ESG, one of the largest hodlers of CSG acreage ini NSW, has endured a frustrating experience with its growth plans.
While ESG has outlined to the NSW government modelling of the economic benefits an LNG plant at Newcastle would bring to the state, it is yet to release the project publicly.
But if the project is worth a fraction of the size of the projects proposed for developement in QLD, the investment is likely to be worth several billion dollars and directly generate thousands of jobs.
Last November esg put in a request for the development to receive significant project status from the government, a recognition that would provide a definite path through the approvals process, but some 10 months later esg is still waiting.
Origin Enery and ConocoPhillips got theirs in 3 and a 1/2 weeks.
ESG's David Casey acknowledges that NSW is still well behind QLD but says he's hopful that will change in time.
NSW Minerala nd Foresty Resources Minister Paul McLeay has defended his government's record, saying 120 million has been earmarked for exploration in 2011 with commitments from two of the state's biggest CSG explorers, Santos and AGL Energy, as evidence that the state is attracting development.
Meanwhile, QLD is gearing up for its own strong signs of commitment.
Santos and Petronas are likely to approve a $16 billion investment in Gladstone.
BG is also poised to apprive a $20 billion QCLNG project, and Origin and ConocoPhillips's $17 billion APLNG is scheduled to occur soon after.
Scott believes QLD got the jump on NSW by mandating that 15 per cent of teh state's electricity must come from gas-fired power stations.
Metgasco's McLoughlin believes a predilection towards coal mining and a lack of experience with the petroleum industy in NSW has contributed to the slow evolution of the state's CSG sector.
NSW Opposition shadow treasurer Mike Baird is scathing of the government's record and says CSG is a stand out opportunity for the state's economic development.
ESG Price at posting:
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