Community

31 July, 2024

Gas exploration permits approved

THE Federal Government will finalise new offshore exploration permits for gas supply to firm renewables and support the economy as Australia makes the transition to net zero emissions.


Minister for Resources and Northern Australia Madeleine King will finalise permits for Esso and Beach Energy in the Otway and Sorrell Basins, with any discovered gas to support the domestic east coast market.

Exploration permits will also be finalised for Chevron, INPEX, Melbana and Woodside Energy on Australia’s west coast, supporting energy security in Western Australia. In addition, 10 permits will be finalised for carbon capture and storage exploration.

The most recent ACCC Gas Inquiry Interim Report makes clear the domestic east coast market may experience gas supply shortfalls as early as 2027.

Supply challenges could persist into the mid-2030s unless new sources of gas supply are developed.

“As ageing coal generation comes offline in coming years, gas will continue to be needed to firm renewable energy generation and as a backup during peak energy use periods,” Minister King said.

“Gas is critical for the transition. But it will be a diminishing proportion of our energy mix to 2050 as other storage technologies come online.”

The first principle of the government’s Future Gas Strategy is Australia needs to reach net zero emissions by 2050.

Gas demand will decline sharply during the transition to clean energy, but steps to secure supply will still be necessary to ensure domestic demand can be met.

The finalisation of offshore exploration permits does not automatically allow new offshore gas production to occur.

Separate and extensive safety and environmental approvals are required through Australia’s independent National Offshore Petroleum Safety and Environmental Management Authority.

More community consultation will also be required before any offshore exploration work can begin.

There will be no new seismic surveying permitted to occur as part of the approved work program for each permit.

Companies will instead be required to licence or reprocess existing seismic data.

A Beach Energy spokesperson welcomed the permit.

“It is broadly accepted that natural gas will play a key role in the energy transition to a lower carbon future, and Beach Energy welcomes the finalisation of this 2021 round of offshore exploration permit gazettals in support of the future potential supply of domestic natural gas,” the spokesperson said.

“Further exploration is needed to bring online new local sources of natural gas through the Otway Gas Plant.

“The finalisation of the permits is in line with the Federal Government’s Future Gas Policy and a critical incremental step to maintaining and building energy supplies to the east coast of Australia offers.”

The Australian Marine Conservation Society (AMCS) hit out at the Federal Government’s decision.

AMCS oil and gas campaign manager Louise Morris said the permits for gas exploration and carbon storage will impact some of the most important areas for our endangered marine life.

“The permits for the waters between Victoria and Tasmania are an affront to the tens of thousands of Australians who oppose the seismic blasting and test drilling proposals in the Otway Basin,” she said.

“More than 50,000 AMCS supporters have taken action opposing the seismic and gas drilling proposals currently before the regulator for approval, with decisions due in the coming weeks.

“It’s time the Albanese Government stopped handing over our ocean to the fossil fuel industry to try and mine more gas and dropped plans to dump carbon pollution under the sea floor, endangering our marine life, marine parks, climate and coastal communities that will bear the brunt of any spills or leaks.”

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