Beach Energy has natural gas operations in the Otway Basin working across the Halladale, Speculant, Geographe and Thylacine (pictured) fields. Photo: Beach Energy.
The Victorian Government has passed new legislation that will enable it to store natural gas in underground reservoirs off the Gippsland coast.
According to the Offshore Petroleum and Greenhouse Gas Storage Amendment Bill 2024, the state will develop additional gas storage capability to support its progress towards 95 per cent renewable electricity by 2035.
Energy and Resources Minister Lily D’Ambrosio claims it will reduce Victoria’s exposure to swings in gas prices during periods of high demand and secure supply to balance the electricity system when required.
However state Greens Leader Ellen Sandell MLA believes the move to be a “cowardly, political decision that denies basic climate science”.
Among the proposed projects is GB Energy‘s Golden Beach Energy Storage project, which has been approved and will be Victoria’s first offshore gas storage facility.
It will be be located off the Gippsland coast, provide around 12.5 petajoules of additional gas storage and increase the state’s total storage capacity by nearly 50 per cent.
The project has undergone an ‘environment effects statement’ process, involving public consultation, and will now progress to its final investment stage. Last year the jack-up rig Valaris 107 drilled a carbon capture and storage appraisal well for the project.
After an initial short period of production, the project will transition to a storage facility. It is expected to deliver 30 petajoules of gas for the domestic market over a year from mid-2027, which makes up around one quarter of Victoria’s annual household and small business consumption.
“We’ve just unlocked new offshore gas storage projects that will be critical to helping us keep the lights on, protect consumers from high energy prices and support industry through the transition,” said Minister D’Ambrosio.
In June, Ellen Sandell MLA voiced her dismay at the government’s approval of a plan to supply gas from an offshore field near The 12 Apostles. Photo: Facebook.
After reports came out in September hinting at the Victorian Government’s future move to encourage more offshore gas projects, Greens leader Ellen Sandell said Premier Jacinta Allan was blowing up any ambition it had of tackling the climate crisis.
“We’ve seen backflip after backflip from this Labor government,” she said. “Instead of listening to climate science and the experts, Labor is pandering to the ring-wing conservatives and fossil fuel lobby groups.
“We don’t need any new gas; Australia already exports far more than we’d ever need. It’s expensive and destroys the climate.”
The Victorian MLA was also bemused by the state’s decision to exclude the electrification of gas cooktops from its net zero road map.
“We should be focussing on supporting people to move to electric cooking and heating, which works just as well and is a lot cheaper and cleaner,” said Ms Sandell.
Earlier this year, Ms Sandell expressed her derision over the Victorian Government’s approval of a gas extraction project near The 12 Apostles.
Developed by Beach Energy Enterprise, the gas extraction project was the first to have been approved by the State Government in a decade. The offshore field is near Port Campbell, on the Great Ocean Road, where tourists flock to see the picturesque southwest coast and natural landmarks.
At the time, Minister D’Ambrosio said the State Government had always been clear that “gas has a role to play in Victoria’s energy transition”.
“It’s critical we support Victorian homes and businesses that can electrify, to do so – helping Victorians save on their energy bills and preserving gas supply for use in businesses, manufacturing and power generation.”
