Community
12 June, 2024
Green light for new gas project
THE Victorian Government gave its approval for the first new gas extraction project in the state in a decade.
Beach Energy Limited was given the green light for its plan to supply gas from an offshore field near Port Campbell.
The project was the first new gas extraction project approved since 2014.
The approval was given on the condition Beach Energy make best endeavours to sell to domestic customers first.
Minister for Energy and Resources Lily D’Ambrosio said renewable energy was the cheapest form of new built generation available right now.
“We've always been clear gas has a role to play in Victoria's energy transition,” she said.
“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.”
No gas extraction activities are permitted in the Twelve Apostles Marine Park, which is located several kilometres away from the Enterprise project site.
Premier Jacinta Allan made the announcement while visiting the region last week.
She said the Enterprise gas field would be critical in delivering the remaining five per cent gas under the Victorian Government’s plan for the state to be 95 per cent renewable by 2035.
Mrs Allan said the project would have a 15-year lifespan, during which time more than 100 jobs would be created, but said gas remained a “diminishing resource” which could not be in the long-term plans of Victoria.
“We’ve always been really clear that as Victoria makes the critically important transition to renewable energy, gas has a role to play,” she said.
“In recognising gas has a role to play, we also need to recognise what the lead scientist are telling us.
“The evidence tells us gas is a diminishing resource and as we prepare Victoria for a renewable energy future.
“The role gas has played historically in Victoria is not going to be the role it plays into the future simply because the resource is not there.”
Beach Energy Limited managing director and chief executive officer Brett Woods welcomed the approval.
“Beach Energy Limited welcomes the final approvals for the operation of the Enterprise Project, which will deliver new natural gas supply from a nearshore field via the Otway Gas Plant near Port Campbell to the Victorian market this winter,” he said.
“Aligned to the Future Gas strategy, recently announced by the Federal Government, gas plays a crucial role in supporting Australia through its transition and remains a critical resource to manufacturing industries throughout Victoria.”
Mr Woods said about 380 people have worked on the Enterprise Project during the development phase.
“Beach’s ongoing exploration, development and production of local natural gas continues to support Victorian businesses and households as well as backing up renewable energy,” he said.
“Enterprise is a great example of how crucial ongoing exploration is to quickly bringing on new gas supply to support Victoria with the initial Enterprise discovery drilled in 2020.”
Friends of the Earth Melbourne slammed the Victorian Government decision to approve production of gas from near the Twelve Apostles off the Otway coast.
Touted as necessary to avoid gas shortfalls by 2028, the project is expected to produce 10 petajoules of climate polluting fossil gas each year for fifteen years.
No More Gas campaigner Freja Leonard said the International Energy Agency and climate scientists the have for years been warning the world can’t afford a single new fossil fuel project if we are to have any chance of avoiding catastrophic climate change”.
“Methane is around 80 times more damaging to the climate than carbon dioxide over a 20-year period,” she said.
“The coming years are critical if we are to ensure a liveable planet.”
Ms Leonard said Australia signed on to the Global Methane Pledge at COP 26 – committing
to reduce Australia’s methane emissions by 30 per cent from 2020 levels by 2030.
“Yet ever since then we have seen more and more gas projects gaining approval,” she said.
“There is no excuse or need for another gas project in this country, despite everything the gas industry is desperately trying to tell us.
“They have had it all their way for too long at the expense of the climate and the Australian economy.”