New gas exploration acreage a welcome boost to Australia’s energy security

Australian Energy Producers welcomes Federal Resources Minister Madeleine King’s announcement today to open five new areas in the Otway Basin for offshore petroleum exploration, which will help ensure Australia’s long-term supply of reliable and affordable gas.

Chief Executive Samantha McCulloch said the decision reaffirms the essential role of natural gas to Australia’s energy security, and the need for continued investment in new gas supply.

“Exploration is a critical first step in the discovery and development of new oil and gas resources needed to ensure Australia’s long-term energy security,” Ms McCulloch said.

“Natural gas provides reliable electricity, fuel for heating and cooking in more than five million Australian homes, and is the main source of energy for Australian manufacturing.”

With the east coast gas market facing shortfalls by the end of the decade, Ms McCulloch said measures to boost supply were critical to ensuring Australia’s future energy security.

“As the Future Gas Strategy confirmed, Australia will need continued investment in new gas exploration and development to meet our energy needs to 2050 and beyond.

“Bringing new gas supply online sooner is the only sustainable solution to put downward pressure on prices.”

The announcement follows yesterday’s welcome move by the Victorian Government to release petroleum exploration permits in the Otway and Gippsland basins.

“This week we’ve seen welcome recognition from the Victorian and Federal Government that continued exploration is critical to maintaining the pipeline of gas supply projects to meet our long-term energy needs.

“With the outcome of the gas market review expected to be announced shortly, we will continue to work with governments on measures to increase gas supply and ensure Australian homes and businesses have reliable and affordable energy.