The state Opposition is calling for Victoria’s drilling ban to be lifted
Pressure is ramping up for Victoria to end its gas drilling ban in coming months, with a plan to allow property owners to veto exploration works and share royalties unveiled.
VIC News
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Victoria’s gas drilling ban should be lifted this year, the state Opposition says, as it unveils plans to allow property owners to veto exploration works and share royalties from extraction.
The moratorium on conventional onshore gas exploration expires on June 30, with pressure ramping up on the Andrews Government to lift the ban, allowing access to new gas that would drive down prices.
A government research program into the state’s potential onshore gas reserves, due to finalise its work soon, has already indicated there is the potential for gas to be found in the Otway Basin.
Under the Opposition’s plan, unconventional gas exploration — known as fracking — would remain outlawed in Victoria.
But conventional exploration and extraction projects could go ahead on a case-by-case basis after environmental assessments and with the consent of property owners, who would share in royalties from any gas extracted. The gas could not be exported outside of Victoria.
“The Liberal Nationals policy ensures that Victoria can produce its own reliable power supply while also protecting landowners’ rights,” Opposition Leader Michael O’Brien told the Herald Sun.
Chief Scientist Alan Finkel this month described natural gas as a critical resource to ensure the reliability of Australia’s energy system, and the Australian Competition and Consumer Commission has repeatedly called for the ban to be lifted to ease supply shortfalls and cut prices.
The federal government has also lobbied for the moratorium to be ditched, with Federal Energy Minister Angus Taylor suggesting Victoria would otherwise not benefit from Commonwealth investment to improve the power grid.
“The principle’s simple — no gas, no cash,” he said.
A stakeholder advisory panel including environmental activists, farmers and businesses groups has been overseeing the research into Victoria’s gas reserves.
Australian Workers Union state secretary Ben Davis, a panel member, said those involved had “checked their biases at the door” and Environment Victoria chief Jono La Nauze agreed the panel had been “very respectful of different views”.
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Fellow panellist Australian Industry Group principal national public policy adviser Tennant Reed said this month: “We’re confident we’re going to get to a result that will have a lot of consent around it and no surprises.”
Opposition energy and resources spokesman Ryan Smith said natural gas was a “reliable, safe and an efficient power supply for our state”.
“Daniel Andrews’ failed energy policies have added significantly to the cost of living burden Victorians are facing every day. This policy will directly support Victorian households and businesses by easing those ever-increasing power bills,” he said.