Victoria may have to ease petrol ban to avoid energy supply problems

The Victorian moratorium was a hindrance, she said, when households and industrialists needed gas at a time when existing fields were likely to produce less in years to come.

“It’s difficult. Of course it is. When you stop the potential exploitation of reserves for consumers and manufacturers like that, well, that’s clearly a pretty big hurdle,” he said. she stated.

While the Federal Minister said she did not want an argument with her Labor counterparts in the state, she made a pointed reference to the Northern Territory as the jurisdiction which imposed a moratorium on coal gas but has then relaxed the restrictions.

“I’m not going to get into any argument with the Andrews government, I really want to work with them in every way, whether it’s on resources and in relation to … electricity production.

“But it’s difficult and it’s important for people to realize that Queensland gas is quite similar to Victoria gas – it just covers a lot more distance and therefore costs a lot more.”

While Victoria sources gas from Bass Strait and Cooper Basin, both regions have been producing gas for decades and have not been supplemented by any additional fields of similar size in the southern states.


Santos intends to install an additional platform in South Australia’s Cooper Basin next year and Beach Energy plans to extract more gas from Bass Strait, but these combined projects wouldn’t be big enough. to meet AEMO’s estimated Victorian shortfall.

Beach Energy has installed the first of seven additional wells off the coast of Port Campbell, southeast of Warrnambool, and is drilling gas nearby as part of a ‘near-shore’ project which will connect to Port Campbell via a pipeline that will be built this summer. This additional supply would still not be enough to meet demand.

Australia’s energy market operator said in March there was enough Victorian gas production to meet demand from the ‘declared transmission system’ until 2026, but warned seasonal winter demand “could exceed the production and storage capacity available” for the state.

In his Victoria Gas Planning Report Update in March, the regulator said the supply outlook had improved since its 2021 report, but “Victorian production continues to fall, with a sharp reduction in capacity expected before winter 2023”.

“Total available production (existing and committed) is expected to increase from 360 petajoules in 2022 to 243 petajoules in 2026.”

The AEMO also said there was a “threat to system security” due to low storage inventory at the Dandenong LNG facility, which is operated by pipeline company APA and supplies gas to retailers. energy during periods of peak demand or low production.

The challenges are not the result of an increase in demand. The AEMO predicts that gas consumption in the state of Victoria will increase from 212 petajoules this year to 208 petajoules in 2026.

However, the regulator expects production from gas fields off the Gippsland coast to rise from 312 petajoules in 2022 to 200 petajoules in 2026.

King stressed that she wanted to “decarbonize” the economy by switching to renewable energy, but had to meet demand from households and industry.


“We want to achieve net zero emissions by 2050, but we just have to accept some of the realities of our current energy mix,” she said.

“The realities are born out of our historical energy mix and the lack of development investment from our energy and political failures during successive governments. So it has to be dealt with in the real world.

“And for the people who are going to get mad at me for what I said, I just want to let them know that I also want to clean up and decarbonize the world. And that’s what we’re working towards. It can’t be -not be on the same timeline as the others. But we all go through the same goal.

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