The Victorian government has approved its first gas extraction project in a decade near the iconic Twelve Apostles tourist site, even as it plans to reduce household reliance on fossil fuels. Premier Jacinta Allan and Energy Minister Lily D’Ambrosio announced the approval of Beach Energy’s project to extract gas from an offshore field near Port Campbell, starting from June 30.
Allan stated the approval came with the condition that the gas be sold to domestic customers first. She noted that this is the first such application since 2014, reflecting the diminishing role of gas in the state’s energy transition. Despite this, the government aims to achieve 95% renewable energy and 5% gas peaking power by 2035.
The government’s plans to transition households away from gas remain unchanged, including a ban on new gas connections for new buildings that took effect in January. Allan emphasized the importance of supporting the shift to electric energy to preserve the remaining gas supply for industries that still need it.
Beach Energy has been exploring the Otway Basin since 2019 and received consent in 2021 to drill beneath Port Campbell national park. The drilling site is located 450 meters outside the park, with the bore extending 3.5 kilometers into the ocean, including a stretch beneath the park. It is situated about 5 kilometers from the Great Ocean Road and the Twelve Apostles but outside the Twelve Apostles Marine Park, meeting environmental requirements.
Greens spokesperson Samantha Ratnam criticized the approval as “absolutely outrageous,” citing opposition from communities and First Nations groups. Environment Victoria warned the project risks damaging the Twelve Apostles for less than a year’s gas supply, stressing the need for Victoria to move away from gas. Friends of the Earth Melbourne also opposed the project, calling it unnecessary.
The project is projected to produce 160 petajoules over 15 years, already included in Australian Energy Market Operator forecasts, and is not expected to alleviate anticipated gas shortages. D’Ambrosio asserted that while gas will still be needed for years, its reliance will decrease as supplies dwindle.
Victoria is the largest gas consumer in Australia, with over 2 million households and businesses using it primarily for heating, hot water, and cooking. Gas combustion accounts for about 16% of the state’s total emissions, with households and small businesses responsible for nearly two-thirds of these emissions.
