Victorian gas ban ‘wasting chance to save economic future’
Victoria is turning its back on a ‘Bass Strait-scale’ investment opportunity by its opposition to CSG exploration.
Victoria is turning its back on a “Bass Strait-scale” investment opportunity by its continued opposition to coal-seam gas exploration and mining across the state, according to the licence holder of a huge untapped gas reserve beneath Gippsland pastures.
Gippsland Gas, a subsidiary of Ignite Energy Resources, has held the exploration licence for the area spanning 2000sq km around Sale, 215km east of Melbourne, for the past 13 years.
Initial exploration has shown the coal-seam gas could be unlocked without fracking, but Ignite and Gippsland Gas chief executive Len Humphreys said it had become a casualty of political fearmongering. “According to our independent expert report there are trillions of cubic feet of potential gas,” Dr Humphreys said. “It’s a field of potentially similar scale to the Bass Strait.
“There’s a massive potential gas resource that can guarantee the future … economical gas in the quantities Victoria needs, sitting there. Yet nobody is talking about it.”
The Andrews government last year introduced a bill to outlaw fracking, prevent the exploration and mining of coal-seam gas and extend the moratorium on onshore conventional gas exploration and development until 2020.
The moratorium was initially introduced by the Napthine government, with Coalition MPs meeting today to confirm their position on Labor’s proposed legislation. Labor does not control the Victorian Legislative Council.
As energy prices continue to rise, the state-based conservatives are under pressure from Malcolm Turnbull who last week slammed the Victorian and NSW governments for blocking onshore gas development “for political reasons”.
“Increasing gas supply in Australia is vital for our energy future and vital for industries and jobs,” the Prime Minister said.
“We’re willing to sit down with the states to determine the right incentives to enable desperately needed, sustainable onshore gas development.”
Victorian Resources Minister Wade Noonan seized on Mr Turnbull’s comments and called on the state opposition to declare whether it stood with farmers opposed to further gas development or with “the Sydney-centric Prime Minister”.
The Victorian Farmers Federation backs the government’s stand.
The lower house is due to debate the bill tomorrow, after parliament resumes today with a condolence motion for victims of the Bourke Street rampage.
Speaking publicly for the first time, Dr Humphreys said Gippsland Gas would apply for a retention licence so it could continue to evaluate the gas resource, estimated at nine trillion cubic feet.
“We’ve been patiently waiting for common sense to prevail, but alas, it seems to have got worse instead of better,” he said.
“We’ve been there to work in harmony with the government but there comes a point where you keep getting kicked, when you get tired of being kicked.”
Dr Humphreys said the relatively young age of the coal deposit — about 40 million years old compared with NSW and Queensland deposits which are 200 million-plus years old — meant gas could be obtained without fracking.
Farmer Gregor McNaughton, whose property has hosted several Gippsland Gas exploration wells, said the resulting water had been a boon for him in times of drought, suitable for agricultural use without treatment.
“It is my belief that there should not be a blanket ban — landowners should retain power to veto, they should have the option,” he said.
“We know there is a huge resource here — we have struck gas in all the wells.
“I’ve seen local towns booming when gas wells are put in place. We survive partly on the rental income from these companies. If the government bans it completely, that could mean thousands of local jobs gone.”