Federal Minister for Resources and Northern Australia Madeleine King has announced new offshore gas exploration permits for Australia’s east and west coast markets in a bid to mitigate long-term supply gaps.
The move comes after the ACCC warned the east coast could face gas shortages from 2027—a year earlier than initially forecast.
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Australia produces more gas than it needs to meet its domestic supply, but most is contracted for export.
“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,” the minister said in a statement.
Permits will be finalised for Esso and Beach Energy in the Otway and Sorrell Basins, with any discovered gas to support the domestic 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.
King said 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,” the minister said in a statement.
The news drew ire from environmental groups, with Greenpeace Australia calling the decision “a step backwards”.
The Australia Institute also levelled criticism over the decision.
Principal advisor Mark Ogge said, “This government was elected to take action on climate change and reduce emissions, but they are opening new fossil fuel projects instead.
“Expanding Australia’s gas production in the middle of a climate emergency is not just short-sighted: it treats our Pacific Island neighbours and future generations with contempt.
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“Sea dumping is a failed technology that is now little more than a delaying tactic for the fossil fuel industry. The fact that these permits are being issued to major fossil fuel companies, so that they can supposedly offset their emissions from other highly polluting projects, is a farce of the highest order.
“This has nothing to do with supporting renewables, it is about producing more gas for export.”
