Matt Johnston: The Allan-government’s transition away from gas is a shambles
The Allan government has gone from telling us there is no gas left in the state to now wanting to fast track projects. When the gas runs low — and bills go higher — the anger will be white hot.
Opinion
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Premier Jacinta Allan’s new pledge to fast-track gas projects is either a sign the government is grappling with Victoria’s energy reality, or a red herring to mask past actions.
More than two million households and businesses face gas shortages within a few years because offshore wells are running low, with little done to replenish supplies.
Don’t take my word for this.
Veteran Victorian Energy Minister Lily D’Ambrosio told parliament this year the government would not leave Victorians “stranded on some fairytale notion that there are all these reserves of gas yet to be tapped”.
“We do not have sufficient supplies of gas in Victoria to meet our future needs,” she said.
Her solution has been to ban new gas connections and warn people to get off gas.
For some families, that is neither simple nor affordable.
For some industries, it is impossible.
Running alongside the supply problem has been the environmental fight over gas, which the Greens say should be ditched sooner to help limit climate change.
Labor supports phasing out gas through its net zero policy, while in 2017 it enshrined a moratorium on onshore gas exploration in legislation.
That moratorium was introduced in 2012 by the former coalition government, in a bid to placate regional voters fearful of fracking.
The parliament overturned the ban in 2021, but for some reason the industry that was effectively told to bugger off didn’t run back and start drilling.
A few months ago one permit for extraction was granted, but no other applications exist.
D’Ambrosio said this year that was “because there is no gas”.
Meanwhile, experts and the federal ALP say the lights could go out if coal-fired power stations close without short-term assistance from gas.
This sparked a proposal for an import terminal three years ago, which would allow for gas to be stored on floating ships and piped in when local supply gets tight – but that was blocked on environmental grounds.
A separate proposal near Geelong is being considered.
This week, Allan promised to fast-track potential gas projects to boost supplies, as part of an economic plan.
A fairytale notion, or a desperate admission of reality?
For select interest groups, chopping and changing energy policy has been their red meat.
For most of the two million households relying on gas, it has been white noise.
But when gas runs low and stops businesses from operating or families from heating homes, anger will be white hot.
Paradoxically, it could further fragment communities on fighting climate change.
Victorian politicians, take a bow.
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