Asset Energy says PEP-11 gas exploration project off Hunter's coast is vital for energy transition

It follows the revelation that Mr Morrision appointed himself to the resources portfolio for the specific purpose of rejecting Asset Energy's application to explore for gas in coastal waters between Newcastle and Sydney.

Asset Energy is presently appealing the decision in the federal court on the basis that it alleges Mr Morrison acted with bias.

The company's executive director David Breeze said on Tuesday that the project could be a major part of any solution to NSW's gas shortages and record high energy prices.

"Our project has the potential to supply 20 years' worth of gas for NSW and we have committed to inject all of our produced gas into the domestic market," Mr Breeze said. "Natural gas will play a critical role in supporting the energy transition, while also underpinning the state's manufacturing industries and other commercial activity. Business NSW estimates 250,000 jobs in NSW rely upon gas as a feedstock and energy source."

But groups which fought-off the project last year, have demanded the federal government confirm its opposition.

"It's right to investigate Morrison's methods when in government, but that doesn't change the fact that drilling for gas between Newcastle and Sydney, Australia's most populated coastline is a terrible idea," Newcastle surfer and co-founder of Surfers For Climate Belinda Baggs said.

"We are calling on Anthony Albanese to honour his commitments opposing PEP 11. He stood on the beach at Avoca and stated. A Labor government that I lead will rule out PEP 11 full stop". Now the community needs certainty that the Prime Minister will rule out Pep-11 once and for all."

The group was one of many that campaigned against the project on the basis of the potential risk that it posed to the ocean and the livelihoods of thousands of people along the coast.

"The community has made its opposition to Pep 11 clear over the past few years, we simply don't want to risk marine life, our own well-being and livelihoods for gas drilling," she said.

"Newcastle has already experiencing climate impacts from fires to floods and now many of the beaches I grew up surfing on including Bar Beach are suffering from extreme erosion.

"We must keep all new fossil fuels in the ground, including gas, and instead invest in a renewable future.

Shortland MP Pat Conroy, who the Labor Party's campaign against the project, told the Newcastle Herald this week that his opposition to the project was unchanged.

"My thoughts on the PEP-11 project are well known, and my position has not changed. This matter is now with the courts and they will make their decision. I won't prejudge that decision by making further comment," he said.

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