Opposition spokesman for resources Ian Macfarlane
Opposition spokesman for resources Ian Macfarlane Kara Irving

NSW urged to follow Qld's lead in building up gas industry

A FAILURE to embrace coal seam gas has prompted the Federal Opposition to accuse the New South Wales Government of destroying its major economic hope.

Speaking to an energy conference in Sydney on Thursday, Opposition spokesman for resources Ian Macfarlane said the state had to follow Queensland's lead in building up the industry.

Mr Macfarlane also criticised NSW for imposing too many restrictions on the gas sector.

He reportedly told the conference how NSW had dithered while Queensland had thrived.

"Instead of drilling 1000 wells each year, (NSW) built just one well in two years," he said.

Mr Macfarlane said the NSW government needed to spruik the industry and warn the public of potential job losses.

NSW has imposed stringent restrictions on the emerging CSG sector in the state after fierce opposition, particularly along its northern coastline.

CSG opponents claimed victory after two major gas companies Metgasco and Dart Energy stalled plans to develop in the region.

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