The state government has bought back gas exploration licences for land in the Hunter from energy company AGL.
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Industry, Energy and Resources Minister Anthony Roberts announced on Monday that the government would buy Petroleum Exploration Licence Two, Four and 267 from AGL as part of a strategy to reduce the coal seam gas footprint in NSW.
PEL 267 applies to 489,827 hectares of land at Maitland, Broke, Singleton and surrounding areas, while PEL Four covers 383,492 hectares in the Upper Hunter at Muswellbrook, Scone and Denman.
The other licence applies to land between Fitzroy Falls, Western Sydney and Lake Macquarie.
In a statement to shareholders on Monday morning, AGL officials announced that the company had a strong gas supply that could cater for household demand until 2027 and commercial and industrial demand until 2021.
It said the company had a chance to release poorly performing assets and focus on a small number of projects, without significant capital spending.
