Offshore acreage for petroleum exploration and CCS a boost to Australia’s energy security

The awarding today of new offshore acreage for petroleum exploration and carbon capture and storage (CCS) opportunities provides a much-needed boost to Australia and the region’s long-term gas supply.

Australian Energy Producers Chief Executive Samantha McCulloch welcomed Resources Minister Madeleine King’s announcement of three years’ worth of acreage releases, which is critical to maintaining the pipeline of gas supply projects needed to ensure Australia’s long-term energy security.

“The Future Gas Strategy made clear that natural gas will remain a critical part of Australia’s energy and net zero transformation, to 2050 and beyond,” Ms McCulloch said. 

“Exploration is an essential part of this – as the first step in delivering the natural gas Australia needs to power industry, back up renewables and fast-track the phase out of coal.”

“With oil and gas exploration at an all-time low across Australia, industry needs policy certainty and regulatory stability to invest in the next generation of gas supply to meet the significant demand for gas that Australia and our region will need.”

Ms McCulloch said today’s announcement is an important step in the right direction, however it is imperative the Government open the next round of petroleum acreage permits as soon as possible to find and develop the next generation of gas supply.

“Australia is facing structural gas shortfalls from 2027 and the outlook will only worsen in the years to follow if we do not have a steady pipeline of new gas projects,” she said.

“It has been two years since the last petroleum acreage release in what used to be an annual process. Australia has abundant gas resources but needs the political will to restore investment confidence and ensure timely approvals for much-needed new gas supply.”

Ms McCulloch said the awarding of offshore acreage for CCS was crucial to the net zero ambitions of Australia and the region.

“CCS has a critical role to play in the decarbonisation of Australia’s economy, and Australia is ideally placed to become a leader in our region,” she said.

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