The state government's 'Future of Gas Statement', which will extinguish more than three quarters of expired Petroleum Exploration Licenses (PELs) across the state, has so far received a chilly welcome from almost all quarters.

Under the statement, which was released on Wednesday 21 July by Deputy Premier John Barilaro, eight of 12 expired PELs across the state will be permanently off limits to mining companies like Santos.

However, PELs that support Santos' Narrabri Gas Project, which was approved last year, will remain intact - meaning the communities that sit on them face the possibility of future gas development.

While landowners in the regions to the west and southwest of the Pilliga will be heaving a sigh of relief, the area still available for development reaches from south of Moree down through a large swathe of the Liverpool Plains almost to Willow Tree.

A map outlining areas where gas development in NSW will and will not be considered. Source: NSW Government.

Mr Barilaro, who is also Minister for Resources and Regional NSW, said supporting gas production in and around the Narrabri region and investment in gas-related infrastructure would shore up the state's gas supply and help strengthen local economies looking to recover from the COVID-19 pandemic.

"We have heard the concerns and questions from our regional communities around PELs and I can confirm today we are reducing the area of land available for gas exploration by 77 per cent," he said.

"When we came to office in 2011, petroleum exploration titles or applications covered 45 per cent of NSW - under our Future of Gas Statement, that figure has been reduced to just 1.5 per cent of the state.”

According to Mr Barilaro the NSW Government will also amend the Mining State Environmental Planning Policy to reflect these changes to provide people with absolute certainty.

“We want to ensure communities where gas exploration occurs receive their fair share and that’s why I’m also confirming additional funding will be made available for these LGAs through a future round of Resources for Regions,” Mr Barilaro said.

The statement's release has been followed by a flurry of statements from industry and community stakeholders commenting on its implications.

While some have welcomed the increased clarity for the farmers and families with properties on the now extinguished PELs many, like Barwon MP Roy Butler, continue to vocally oppose the Narrabri Gas Project.

Swift rebukes have come from Independent MLC Justin Field, NSW Farmers, the Nature Conservation Council, the NSW Country Women's Association and anti-coal seam gas organisation the North West Alliance.

Even Santos - which owns or is linked to most of the state's remaining PELs - and the NSW branch of the Australian Petroleum Production and Exploration Association have objected to the 'Future of Gas Statement'.

Separate spokespeople from both organisations said almost completely blocking off gas exploration in NSW would cost thousands of people their jobs and drive up the price of gas, which they say is a critical resource in various industries.

At the same time, the Climate Council has rejected any claims that gas is still a necessary source of power in Australia.

"Gas will play an ever-decreasing role in the new energy economy - should the federal government force gas into the market by underwriting the risks, it is likely to drive up household power prices and prices for our manufacturing,” Climate Council spokesman and former BP Australasia President Greg Bourne said.

“Gas simply cannot compete with renewable energy, which is bringing down power prices for consumers and creating a cleaner, healthier energy system."

So far, the Australian Workers Union is the only non-government organisation to welcome the statement, emphasising its importance in supporting manufacturing.