Media release: Victorian acreage release a timely step to secure future gas supply

Australian Energy Producers has welcomed the Victorian Government’s decision to release petroleum exploration permits in the Otway and Gippsland basins — the first acreage release since 2018.

“Victoria is forecast to experience gas shortfalls as soon as 2027,” Australian Energy Producers Victoria Director Peter Kos said.

“Today’s announcement is an essential first step in unlocking new domestic natural gas resources and demonstrates that the Government is taking steps to address future energy challenges.

“Natural gas from the Bass Strait has reliably powered Victorian homes and industry since the 1960s, but those legacy fields are now in decline. New discoveries are essential to replace that supply and ensure the state’s energy security.

“The Victorian Government has rightly recognised the need to bring on new gas supply for the millions of homes and businesses that rely on natural gas every day.”

Natural gas plays a critical role in Victoria’s energy system, with more than two million households connected to gas and around one-third of the state’s manufacturing energy needs met by gas.

Mr Kos said the government should commit to regular — preferably annual — acreage releases to rebuild investment confidence and secure ongoing gas supply.

“This process is crucial to developing Victoria’s energy resources, strengthening investor confidence and generating increased exploration activity.

“The gas industry stands ready to work with the Government to bring new supply online and deliver affordable, reliable and cleaner energy for Victorians.”