Consumer watchdog warns of gas supply shortfalls by 2027 as global gas explorer cans Victorian search

Despite warnings of major gas supply shortfalls ahead of next winter, activists are celebrating the demise of a key search for the vital resource in Victoria.

Protesters are celebrating as a global gas exploration company scraps a search for gas in the Otway Basin. Picture: Alan Barber

Victorians are being warned to brace for major gas supply shortfalls ahead of next winter as activists celebrate the demise of a plan to search for the vital energy resource in the Otway Basin.

Australia’s consumer watchdog has warned that a shortage of gas is new expected in as little as three years.

The revelation, which has prompted the Australian Competition and Consumer Commission (ACCC) to call for gas exporters to increase supplies to the local market, came as seismic surveyor TGS decided to pull the plug on a major Victorian gas exploration project.

Hundreds of surfers protested against seismic blasting in the Otway Basin earlier this year. Picture: Alan Barber

The energy data company in a statement said the withdrawal of the planned gas exploration came amid “competing global priorities”.

Australian Energy Producers chief executive Samantha McCulloch blamed pressure from “misinformed” Greens MPs and activist groups for the decision, accusing protesters of putting the whole country at risk.

“The Greens and activists want to stop all new gas developments, with no regard for the devastating impact on Australia’s economy and energy security,” she said.

“Seismic surveys are a safe and essential technology used in Australia and around the world for more than 60 years.

Ms McCulloch said she feared for Victoria’s energy production in coming years, saying the state was particularly vulnerable.

“Victoria is facing gas supply shortfalls from 2027 and already came close to running out of gas during peak periods this winter,” she said.

“With Victorian gas production declining rapidly, immediate action is needed to find and develop the new gas supplies so crucial to eastern Australian homes and businesses.”

Pressure from protesters has pushed TGS to drop its search for gas, AEP says. Picture: Alan Barber

But Greens senator Peter Whish-Wilson called the decision a “historic moment” in the fight against fossil fuel that proved “community pressure works”.

“This win belongs to all the people who have rallied hard for years to protect marine ecosystems and avoid irreversible changes to the Earth’s climate,” he said.

No More Gas campaign co-ordinator for Friends of the Earth Melbourne Freja Leonard said the wildlife that called the Otway Basin home would be spared following the announcement.

“This project spelled disaster for the Southern Ocean and all marine life that calls the Otway Basin home,” she said.

The decision came as Federal Resources Minister Madeleine King revealed she had granted two other production licences to Beach Energy over the Artisan and La Bella fields offshore of Victoria.

Minister for Resources Madeleine King announced two new production licenses in Victoria. Picture: Martin Ollman

“As Australia makes the transition to renewable energy, we need to ensure stable gas supply to the market,” she said.

Federal opposition resources spokeswoman, Susan McDonald, said the government’s decision to approve two offshore gas production licences in offshore Victoria was a “panicked move” aimed at diluting the impact of the shortfalls forecast in the ACCC report.

Senator McDonald claimed one of the approvals had sat on the minister’s desk for over 150 days after the Victorian government gave it the green light.

“These fields are years away from production, and won’t do anything to address the looming issues as highlighted by the ACCC and other market experts,” she said.

“The government has also failed to deliver on any reforms to the offshore consultation process, meaning that these projects will likely get caught in the convoluted and drawn-out approvals process.

A Victorian government spokesperson said the commercial decision by TGS was “for the company and has nothing to do with Government”.

She said other companies were currently exploring for gas in Victoria.

“Major gas explorers are currently conducting new exploration or production studies in Victoria,” she said.

Originally published as Consumer watchdog warns of gas supply shortfalls by 2027 as global gas explorer cans Victorian search