SYDNEY, March 26 (Reuters) - Exxon Mobil Corp ( XOM ) on

Tuesday gave a dire warning about the outlook of Australia's

domestic gas supply, joining other gas producers in calling for

policy stability and more investment in the sector.

There is an urgent need for new investment in domestic gas

supply and infrastructure to provide energy security and

affordability for households and businesses, ExxonMobil

Australia's Commercial Director David Berman said in a speech to

the Australian Domestic Gas Outlook (ADGO) conference in Sydney.

"Without investment, ExxonMobil Australia estimates by 2030

domestic gas supply available to southern states will decrease

by 44%," Berman said.

Exxon operates the Gippsland Basin joint venture, the

biggest single gas supplier into the country's southern region,

which includes New South Wales, Victoria, Tasmania, the

Australian Capital Territory and South Australia.

Berman said it takes just months to apply for and receive an

onshore and offshore drilling permits in the U.S. but in

Australia it can take up to two years.

"Chasing sizably lower domestic gas prices requires

significantly shorter regulatory timelines because one third of

the gas that will be required by consumers on the east coast

between 2025 and 2030 is not in production," he added.

The Gippsland Basin has the resources to be able to help

plug the gap, but final investment decisions to develop that gas

have yet to be made, Berman said.

Gas producer Senex Energy's Chief Executive Ian Davies said

Australia's environmental approval process was killing

investment as it takes almost three years for new projects to

secure a green light. Davies said the Labor government's planned

changes to its environmental protection law had to ensure the

nation's resources industry remained competitive.

Labor has proposed reforming the Environment Protection and

Biodiversity Conservation Act (EPBC) with new legislation and

the establishment of an agency to oversee development decisions.

The government has argued the changes should reduce red tape

and streamline the project assessment process.

"The 1,009 days it takes on average to approve a resources

project under the EPBC act is killing investment in Australia,"

Davies told the conference.

Minister for the Environment and Water Tanya Plibersek did

not immediately reply to a request for comment.

Senex, owned by South Korea's Posco International Corp

and Hancock Energy, is a Queensland-based gas

producer. It had been due to spend A$1 billion ($653 million) on

expanding its Atlas project in Queensland's Surat Basin.

The expansion was put on hold in December 2022 after the

government set a price cap on gas sales by east coast producers

to reduce soaring power bills for households and businesses.

($1 = 1.5298 Australian dollars)