Use of unconventional gas (natural gas extracted from unconventional resources such as coal seams or shale rock) has expanded dramatically in Australia over the last few decades following advances in extraction technology. Since 1996, Queensland has rapidly expanded its use of coal seam gas (CSG) for liquid natural gas exports and domestic supply. This expansion means that CSG now represents one of the biggest sources of gas in eastern Australia. In New South Wales, the Narrabri Gas project was given final approval in 2020 and has the potential to provide up to 200 terajoules of gas a day for domestic use for 20 years (half of NSW demand). The Northern Territory and Western Australia also have significant resources. In the Northern Territory, exploratory titles for shale gas expansion over vast tracts of land in the Beetaloo Basin have been granted, and the federal government has issued nearly $50 million in federal grants and partial approvals for commencement of works. Approval for the Beetaloo Basin was subject to recommendations from the 2018 inquiry into shale gas in the Northern Territory.

This chapter presents an overview of the development of the unconventional gas (UG) industry in Australia, particularly in Queensland where most activity has occurred to date. We explore government commitment to the establishment of the UG Industry as a new export product, and subsequent government facilitation of the growth of the industry via the retreat from regulation, the reduction of rigour around the permitting and approvals process and the reluctance to consider cumulative impacts of multiple UG operations in the same area. The issues of public health, water security, domestic energy supply and pricing, and greenhouse gas emissions are considered. In the final analysis, a sustainable ecological development approach should be the ultimate outcome of the adaptive environmental management regime, and indeed was the stated policy of government pre-UG industry. If this was adopted, then the future of the unconventional gas industry in Australia would be limited.