Onshore conventional gas industry to restart next month

THE onshore conventional gas industry in south-west Victoria is still set to restart next month, according to a recent update from the Department of Jobs, Precincts and Regions (DJPR).

The Victorian Government will lift its moratorium on onshore conventional gas on July 1, but the ban on unconventional gas (also known as fracking) remains permanently banned across the state and was added to Victoria’s Constitution in March.

Interim regulations (an extension of the existing regulations) have been put in place for a short period to bridge the gap between the present regulations phasing out and the new regulations being made.

Onshore gas activity in south-west Victoria will be in the Otway Basin, which is considered to have higher potential for new discoveries of gas than the Gippsland Basin.

DELWP’s industry update noted the Victorian Gas Program had reviewed Victoria’s onshore Petroleum Regulatory Framework and found it was robust for managing environmental and safety risks, which were the aspects that would need oversight initially when onshore conventional gas activities return.

An independent stakeholder advisory panel made up of farmers, environment groups, industry representatives and local councils, chaired by Dr Amanda Caples, recommended improving project transparency and community engagement through new Petroleum Regulations.

The Regulatory Impact Statement consultation period for the Petroleum Regulations 2021 will open soon for assessment by the community and industry.

The onshore conventional gas restart follows three years of scientific investigations by the Victorian Gas Program, which found an onshore conventional gas industry would not compromise the state’s environment or agricultural sector.

Since the announcement in 2020 of the ending of the onshore conventional gas moratorium, Earth Resources Regulation has visited existing sites as part of a program to ensure compliance with existing safeguards and that tenement holders were prepared for the new regulations.

“It was great to meet with the onshore conventional gas industry this week and provide an update on the work to restart the industry in 40 days’ time,” DJPR head of resources John Krbaleski said.

“We now have interim regulations in place for the July 1 onshore conventional gas restart, the improved Petroleum Regulations 2021 will soon follow and be in place to guide explorers and developers on engaging with the community as a key part of their project plans.

“The extension to the current regulatory provisions ensures there are no risks to the community or the environment.”

For more information, head to the Earth Resources website.