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ABC News
National
Paulina Vidal and Carla Hildebrandt

Prime Minister Anthony Albanese won't be drawn on the future of NSW PEP-11 gas project

Prime Minister Anthony Albanese has refused to be drawn on the future of a gas exploration licence off the New South Wales coast.

On Friday, the Commonwealth and the companies involved agreed to end legal action on the project known as PEP-11 (Petroleum Exploration Permit 11), which stretches about 4,500 square kilometres offshore from North Head in the south to Newcastle in the north.

If the consent orders are approved by the Federal Court, former prime minister Scott Morrison's move in 2021 to block the licence extension will no longer apply.

The decision will then rest with a joint authority made up of the Albanese and NSW governments.

On the campaign trail with Labor leader Chris Minns in Eastwood in Sydney's north-west on Saturday, the prime minister said he would not follow in the footsteps of his predecessor.

"It's important that myself and the resources minister, don't comment. We have proper processes. That's how we got into this circumstance in the first place," he said.

"What my government will do is always act in accordance with the procedures which are necessary … We need transparency in processes."

Legal action by Asset Energy and Bounty Oil & Gas was taken after it was revealed that Mr Morrison had appointed himself to a number of portfolios including treasurer and then-resources minister Keith Pitt to reject the PEP-11 application — overriding Mr Pitt's wishes to extend it.

Mr Albanese has previously been outspoken in his opposition to the project, tweeting in March 2021: "We need to save our coast", comments he reiterated in November that same year at a press conference on NSW's Central Coast.    

"Absolutely, we will stop PEP-11 going ahead, full stop. Exclamation mark. No question. Not equivocal. No ifs, no buts," he told a press conference on NSW's Central Coast.

But when grilled about his stance today he said: "I'm the prime minister of Australia and I have particular responsibilities."

Earlier, state treasurer Matt Kean challenged the opposition leader to indicate where he stood.

"Here we have got the federal Labor government supporting it, and the question for Chris Minns is is he going to stand with the Anthony Albanese in opening up PEP-11, or is he going to stand with the community who strongly oppose it?" he said.

"The New South Wales Liberal-National government opposed PEP-11 in 2022 and we continue to oppose it strongly."

Mr Minns reiterated Labor's position, which he said hadn't changed for over a decade.

"We stand with our Federal Labor colleagues in this opposition … NSW Labor has voted against motions in relation to that process and that proposal many times in the New South Wales parliament," he said.

"We need to make sure that the mistakes of the last year aren't repeated, and even those that are vehemently against this proposal from going ahead would be devastated if a mistake was made at the Commonwealth level and we were back in court." 

Member for Sydney Alex Greenwich was among a group of six independents contesting next month's election vowing to take strong action against PEP-11 by backing a bill that would render the project unviable.

"It's shocking to see the Albanese government overturn the only good environmental action taken by the former Morrison government," Mr Greenwich said.

"We need more than talk from the state government, we need action.

"So we're all here today to show support for legislation which was drafted by the independent Justin Field which would essentially ban any supportive activity of oil and gas drilling offshore within New South Wales territory."

The Federal Court is expected to hand down its decision on February 8.

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