A looming gas shortfall in NSW could put thousands of jobs and small businesses at risk.
That’s according to industry leaders, who believe urgent action is needed to secure supply and stabilise prices.
Business Hunter has also backed a new Business NSW report forewarning that NSW’s energy future is at risk without continued investment in gas infrastructure.
The document, Running on Empty 2.0 – The Evolving Role of Gas in NSW, warns declining gas supply could undermine manufacturing, hospitality and essential services.
But, regional NSW is expected to face the greatest risk.
It highlights stalled projects such as the Narrabri Gas Project and the Hunter Gas Pipeline as key pressure points in the state’s energy network.
Gas remains deeply embedded in daily life and industry, powering more than 1.5 million homes and around 50,000 small businesses across NSW.
It also supports approximately 250,000 jobs across 29,000 manufacturing businesses, according to the report.
Business Hunter CEO Bob Hawes admitted the implications extended well beyond energy bills.
“Medical procedures, milk, bread, coffee, clothing: these everyday essentials all depend on gas for production,” he said.
“On a larger scale, fertiliser production, alumina refining and food processing are all reliant on gas.
“Without urgent investment and policy clarity, we face higher costs, lost jobs, and a weaker industrial base.”
Nearly one in five NSW businesses rely entirely on gas, with hospitality particularly exposed.
About 64% of businesses in that sector depend on gas alone, while prices for business customers have jumped almost 50% in the past four years, according to IPART.
The Australian Energy Market Operator has already forecast major gas shortfalls from 2028.
Mr Hawes said gas would continue to play a role well beyond 2050, particularly for hard-to-abate industries working towards net zero.
“The big cities have long benefited from regional NSW’s golden triangle of manufacturing, agriculture and mining working together to drive our economy,” he added.
“If we don’t act to secure affordable, reliable gas, many businesses risk closure or moving offshore.”
The report also highlights the role of gas in maintaining electricity reliability as coal-fired power stations retire and renewable energy ramps up.
Gas is expected to provide critical firming to keep the grid stable during this transition.
Business NSW is calling for faster supply approvals, including the Narrabri Gas Project, while supporting renewable gases such as biomethane and hydrogen
The organisation has also flagged support for a proposed east coast gas reservation scheme.
“Generating more supply will help strengthen our industrial and manufacturing spine,” Mr Hawes said.
He explained this could help keep more gas onshore, ease price volatility and improve supply certainty for local businesses.
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