Victorian government approves new gas exploration to combat future energy shortfalls
The Allan government faces fierce backlash after secretly approving gas exploration licences that could determine whether Victorians face energy blackouts within three years.
The Victorian government is moving to shore up the state’s gas reserves and stave off future shortfalls, approving two new exploration licences for gas projects in the Otways and Gippsland.
The move was revealed in the Government Gazette issued on Wednesday, with companies being urged to tender to develop new onshore and offshore gas reserves.
It has been welcomed by gas advocates who have long been calling for action, and follows a scathing review by Victorian Auditor‑General Andrew Greaves, which found Victoria needs to expand energy resources, including gas, with the state facing risks such as gas shortages from 2026, higher than expected electricity demand, delays to renewable projects, and adverse weather conditions.
Companies who will rely on existing seismic data and not undertake fresh seismic blasting will be prioritised, and must “engage early” with local Indigenous groups to ensure projects are acceptable to Traditional Owners.
Australian Energy Producers Victoria Director Peter Kos said: “Victoria is forecast to experience gas shortfalls as soon as 2027”.
“Today’s announcement is an essential first step in unlocking new domestic natural gas resources and demonstrates that the Government is taking steps to address future energy challenges.
“Natural gas from the Bass Strait has reliably powered Victorian homes and industry since the 1960s, but those legacy fields are now in decline.
New discoveries are essential to replace that supply and ensure the state’s energy security.
“In December Premier Jacinta Allan made a new pledge to fast-track gas projects, a sign the government is grappling with Victoria’s energy reality.
It came after former Premier Daniel Andrews enshrined a moratorium on onshore gas exploration in legislation in 2017 and also banned fracking.
Veteran Victorian Energy Minister Lily D’Ambrosio told parliament this year has been pushing to phase out the use of gas and connections in new home were banned this year in the bid to conserve supplies.
Gas groups had previously called on the state to ramp up gas projects.
A Victorian government spokesperson said: “This responds to industry requests to explore for gas in these two locations in Victoria.”
“We’ve always said gas is part of our energy transition – but legacy supplies from Victoria’s Bass Strait are dwindling and prices are going up.
“Companies are encouraged to reduce the impact of their exploration activities using existing data and reduce the need for seismic surveys where possible.”
Opposition spokesman for energy David Davis welcomed the move but said it had come too late.
“The Andrews and Allan Government have left Victoria exposed, short of gas, after 11 years in government,” he said.
“Given no onshore conventional gas exploration permits have been issued since
2013, it is not surprising we are running short of gas.”
“Labor’s war on gas has done tremendous damage to Victoria.
“However, the announcement of new exploration licences has been slammed by environmentalists. Greenpeace Australia Pacific has slammed the Victorian government’s decision.
“The Victorian government’s decision to open up new gas exploration tenders flies in the face of science and community opposition. It is opening the door to more fossil fuel pollution at a time when the science demands a rapid exit,” Solaye Snider, Campaigner at Greenpeace Australia Pacific, said.
“What we are seeing today is the Victorian government effectively handing a blank cheque to greedy gas corporations to do more seismic blasting, while ignoring blanket community opposition to the proposal.
“The Victorian government likes to talk up its climate credentials, but this is a serious and alarming backwards step, and a slap in the face to the communities who have fought so hard to stop further gas expansion, and will continue to resist.”
Originally published as Victorian government approves new gas exploration to combat future energy shortfalls
‘Fascinating and busy life’: Tributes for Cherryl Barassi
