Victorian Energy Minister Lily D’Ambrosio takes fresh swing at federal counterpart over gas

Victorian Energy Minister Lily D’Ambrosio has taken a fresh swing at her federal Labor counterpart, saying the backing of gas to keep the lights on “is wrong”.

The Victorian Energy Minister has taken another swing at her federal counterpart over a Commonwealth plan to produce and export more gas, claiming her view is “wrong” and that there is “no gas” left in Victoria.

Energy Minister Lily D’Ambrosio was grilled over the state’s gas plan in a Public Accounts and Estimates hearing on Thursday, claiming the state government was right to speed up its transition away from gas while the federal government ramps up production and exports.

Earlier this month, Resources Minister Madeleine King described the Commonwealth’s new Future Gas Strategy as one “based on facts and data, not ideology or wishful thinking”.

Ms King said “gas will remain an important source of energy through to 2050 and beyond” to avoid energy shortfalls and price hikes on the path to net zero.

But Ms D’Ambrosio on Thursday slammed Ms King’s comments, saying exporting gas only increases costs for Victorians.

“She’s wrong,” she said.

“I’m happy to say that Madeleine King is wrong.”

Ms D’Ambrosio said the state’s plan was aimed at “not leaving Victorians stranded on some fairytale notion that there are all these reserves of gas yet to be tapped in Victoria”.

Lily D'Ambrosio says Federal Resources Minister Madeleine King is wrong about gas. Picture: Luis Enrique Ascu

Ms King has said gas will remain an important energy source beyond 2050. Picture: Martin Ollman

A spokesman for Resources Minister Madeleine King on Thursday said Australia needed more renewables to achieve its climate targets and “for the moment, we need gas to get us there”. “The Future Gas Strategy is Commonwealth policy. State policy is a matter for the Victorian Government,” he said.

The comments come amid an ongoing stoush between the two energy ministers, with the Victorian government and the Commonwealth at odds over the role of gas in the transition to net zero.

Earlier this year Ms King said there was “no doubt Queensland is doing the heavy lifting in terms of gas supply for the whole of the east coast”.

The comment prompted Ms D’Ambrosio to hit back on the social media platform X, accusing Ms King of behaving like a “Coalition Minister” and claiming Queensland remained a net importer of Victorian gas.

Ms D’Ambrosio on Thursday maintained that there was no ban on onshore conventional gas exploration or extraction in Victoria but conceded that the government had not issued a single licence for new gas exploration since coming to power in 2014.

Ms D’Ambrosio said no one had applied for permits for onshore gas exploration or extraction.

“There is no gas,” she said.

“Geology also tells us in Victoria … our gas reserves are depleting.”

Victoria has banned gas connections in new homes. Picture: Supplied

The Australian Energy Market Operator last month warned of gas shortages from 2028 in southern states, including Victoria.

Ms D’Ambrosio later said some reliance on gas resources was going to be needed “for many years to come”.

“Whether it’s in Commonwealth waters, state waters, or indeed onshore … it’s going to be important for us to continue to source supplies of gas,” she said.

“That’s really critical because this is not like turning on and off a tap.”

Ms D’Ambrosio, who was also questioned about the state’s plans to build a series of offshore wind farms, confirmed the Port of Hastings was still the government’s top pick for offshore wind.

This is despite resistance from the federal government about risks to local flora and fauna.

“We are absolutely on track,” she said.

Ms D’Ambrosio could not guarantee that all of the state’s offshore wind farms would be built off a Victorian port, opening the door to reliance on interstate projects.

“I’m not here to pre-empt any tender processes, any auction processes, that would be foolish,” she said.

Australian Energy Producers Victoria Director Peter Kos rubbished Ms D’Ambrosio’s claims that Victoria’s gas reserves were running low, saying the state “has abundant onshore gas reserves”.

“But the political will is missing and new developments that can put downward pressure on prices and avoid blackouts will not proceed unless the government provides a stable regulatory environment to allow investment,” he said.

Mr Kos pointed to the government’s own Victorian Gas Program which found there is up to 830 petajoules — about four years worth — of conventional onshore gas.

“That study did not consider unconventional gas and the state has not been explored as much as it should have given the state’s long-running anti-gas policies and bans,” he said.