Media Release: Victorian Government finally takes steps to support new gas supply

The Victorian Government’s commitment today to fast-track approvals for new gas supply is welcome and long overdue, but will need to be backed by immediate action if the state is to avoid looming gas shortages, Australian Energy Producers Chief Executive Samantha McCulloch said.

Victorian Premier Jacinta Allan’s Economic Growth Statement promises to fast-track new gas extraction, storage and transmission projects alongside renewable projects to “ensure reliable access to gas for Victorian businesses”.

“The Victorian Government has recognised it needs to act to bring on new gas supply for the millions of homes and businesses in the state that depend on natural gas,” Ms McCulloch said.

“Australia’s energy regulators, gas users and producers have been urging state and federal governments to urgently remove barriers to new gas supply to avoid gas shortfalls that are forecast to hit Victoria and NSW as soon as 2027.

“For years these warnings have largely gone unheeded, so the Victorian Government’s commitment to fast-track regulatory approvals for new gas supply is a step in the right direction.

“However, after more than a decade of demonising gas and driving away investment, Victoria is starting on the back foot.

“Today’s announcement must be backed by immediate actions to restore investor confidence and deliver tangible reforms that will translate to new gas supply sooner.”

Ms McCulloch said Victoria has significant undeveloped onshore and offshore gas resources, and Victoria’s gas explorers and producers are ready and willing to work with the government to meet the state’s long-term energy needs.

“Victoria is running out of gas because it has failed to ensure supply kept up with demand. Today’s announcement needs to represent a turning point in the Victorian Government’s energy policy,” Ms McCulloch said.

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