MP says Narrabri 'best hope' of addressing gas shortages

LABOR'S energy spokesman has called on the Federal and New South Wales governments to push through a controversial gas development near Narrabri.

Opposition MP Gary Gray, a former Woodside executive, told an energy conference on Tuesday that both the State and Federal governments were "running chaotic hot and cold gas policy" over the project.

Mr Gray said a separate Santos project near Gloucester, which has met with heated opposition from environmental and community groups, had been described by the state's Chief Scientist as having "manageable impacts".

He said the Narrabri project was the state's "best hope" of addressing potential gas shortages, and called on the NSW Government to move the company's Gloucester project "quicker through rigorous approvals to production and prevent it being stalled and held hostage by activists".

Mr Gray also said Labor was already in talks with the Abbott government over exempting the aluminium industry from the renewable energy target, but the Opposition would not support scrapping it altogether.