Offshore gas exploration expansion given green light in Victoria

THE State Government has given the green light to expand offshore gas exploration off the coast of Victoria, but it has sparked fears more companies will be allowed to drill onshore.

THE State Government has given the green light to expand offshore gas exploration off the coast of Victoria.

However, the move is raising concerns more companies will be allowed to drill from onshore operations in order to access reserves close to the coast.

Victorian Minister for Resources Tim Pallas announced five new oil and gas blocks would be released for exploration today.

MORE NEWS: COUNTRY THAT CAN’T GET ENOUGH OF MELB

ROYAL WEDDING: YOUR GUIDE TO BIG DAY

They are located in the offshore Otway Basin in state waters extending from Port Campbell to the South Australian border.

A worker passes an oil drilling rig in an oilfield in Russia. Photographer: Andrey Rudakov/Bloomberg

But with the areas located less than three nautical miles off the coast it is understood companies will be able to set up operations onshore and through an extended pipeline operation.

It comes after the Andrews Government extended a moratorium on drilling for “conventional” onshore gas until June 30, 2020.

The policy was announced in August 2016 when the Andrews Government placed a permanent ban on fracking.

Offshore gas exploration and development projects would continue unimpeded.

Mr Pallas said they were not going back down on their promise, despite it being revealed companies could access the offshore reserves from the land.

He said the move was fuelled by the need to help build long-term supply of gas for Victorian homes and businesses.

“Many Victorian homes and businesses rely on gas and we support new exploration and development of our vast offshore gas resources to ensure long-term supply,’’ Mr Pallas told the ABC. said.

“We’re focused on the future and planning ahead to ensure Victoria and the east coast market has the gas we need to support our growing population and economy.

Treasurer and Resources Minister Tim Pallas. Picture: Daniel Pockett.

“It’s time the Turnbull Government backed our call for a domestic gas reserve so Australian gas goes to Australian households and businesses.”

Friends of the Earth Cam Walker has opposed the move to allow more offshore operations.

“Drilling is not a solution to high energy prices,” he said.

“It will take time to investigate the resource, get approvals, and then build drilling infrastructure, so it is very unlikely to have any impact on gas prices for four or five years.

“A better option would be to assist Victorian households to access energy efficient appliances for heating, cooling and cooking. This will result in Victorian households paying less for energy and can be enacted immediately.”

Currently Halladale-Speculant located in the Otway Basin is allowed to carry out its operations from onshore to access offshore gas reserves.

MORE HERALD SUN:

CRACKDOWN AFTER PARAMEDIC BASHERS DUCK JAIL

PM REJECTS PUSH FOR CITIZENSHIP REFERENDUM

MEGHAN’S SISTER MAKES EXPLOSIVE ROYAL CLAIMS