A new gas project in Victoria is expected to be up and running in 2028 after state and federal government approval was given.
Construction work on Amplitude Energy’s Annie Gas Field Project in the Otway Basin is due to start next year and production beginning in 2028.
The site is located 9km offshore from Peterborough and Port Campbell, the Friends of the Earth group says.
Victoria’s Energy and Resources Minister Lily D’Ambrosio claims they are managing the state’s energy transition “responsibly” by unlocking local supply and lowering bills.
“This approval unlocks more affordable, locally produced gas for Victorians helping to secure supply for the industries that still rely on it,” she says.
The state government says the project could supply more than a third of Victoria’s annual use as legacy supplies from Bass Strait dwindle and prices go up.
Existing equipment from the Casino-Henry-Netherby field in the Basin will be used.
Meanwhile, the government has changed offshore petrol and gas storage laws for Golden Beach’s $1 billion gas production and storage project in Gippsland.
The government claims this project could boost Victoria’s storage capacity by 70% and further reduce the risk of winter peak day shortages starting in 2029.
Click here for more about the Otway Basin
GAS MOVE CONDEMNED
Friends of the Earth condemned the decision, saying long-held community resistance to gas drilling will flare up.
“In the 2010s, we saw an enormous community campaign in southwest Victoria that fought for a ban on fracking and new drilling.
“Is the government prepared to overrule the overwhelming local community sentiment against drilling?” said the group’s Offshore Gas campaigner Stan Woodhouse.
“Victoria is making strong progress in getting off it. What we need now is to ramp up those efforts, not go backwards by drilling for more fossil gas.”
He says a state commitment to reduce emissions by 80% by 2035 is now in jeopardy.
“Emissions from new offshore gas drilling will jeopardise our efforts to act on the climate crisis,” he says.
Community consultations will start from May 27 with local drop-in sessions in Portland, Warrnambool and Peterborough.
The project is scheduled to start production in 2028 and will drill 9km off the coast from Peterborough and Port Campbell, according to the group.
VCCI WELCOMES NEWS
The Victorian Chamber of Commerce and Industry (VCCI) welcomed the news, claiming it will help secure business confidence during the transition to net zero emissions.
VCCI acting chief executive Amelia Bitsis says the decision “reflects a need for practical, energy policy” that supports emissions reduction and economic stability.
“We have consistently said gas will remain an essential part of Victoria’s energy mix for some time yet, particularly for manufacturing, industrial operations and thousands of small businesses that rely on it every day,” she says.
“Victoria is already facing significant pressure around energy affordability and future supply.
“Unlocking additional local supply helps strengthen energy security, our sovereign capability and supports investment confidence and reduces the risk of further price shocks such as the current fuel crisis.”
Bitsis says that the chamber wants to see spending on renewable energy continue.
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