Gas strategy hints at Viva terminal’s potential

THE VICTORIAN government says a gas storage terminal in Geelong could play a critical role in securing Victoria’s short and mid-term energy supply, as a committee considers its final advice on whether to approve the project.

This month, the government released its Gas Substitution Roadmap, which outlines strategies to reduce the state’s reliance on the fuel and to power homes and businesses with greener sources.

But the report also acknowledged the need for a steady gas supply while a transition to alternative sources ramps up.

Energy Minister Lily D’Ambrosio said the roadmap aimed to apply downward pressure on power bills and support the state’s sustainability goals.

“Gas is no longer the cheap fuel it once was – we know renewables are the cheapest form of energy and we’re making it easier for Victorian households and businesses to go all electric with more choice and more support,” Ms D’Ambrosio said.

The strategy would further incentivise electrification through discounts and streamlined planning, support industries’ transition to new gases such as from hydrogen and biomass, and wind down rebates for new gas home appliances.

It also expected gas to remain heavily used in coming years as the transition continues, and that recent supply and price pressure highlighted need for new gas mechanisms and technologies to guard against future shortfalls.

The report cites last month’s national energy ministers’ meeting, where Victoria committed to “actively progress rule changes to support gas storage”.

It names Viva’s proposal for a floating gas terminal, which would store and convert liquified natural gas from across Australia for Victoria’s pipelines, as a project now under review that could boost security and reliability if approved.

Hearings are under way for the project’s proponent and its objectors to present their case to a state planning panel, which would provide advice to the Planning Minister to ultimately decide on its approval.

Viva argues its gas terminal project would provide “essential infrastructure to provide energy security for Victoria”.

“The roadmap acknowledges that gas has been a crucial part of Victoria’s energy mix for many years, and will be required during the energy transition over the next 20 to 30 years,” a spokesperson said.

“The roadmap acknowledges that through the energy transition, the provision of energy security and affordability will be important goals and that gas will play a crucial role.”

The terminal is part of a wider Geelong Energy Hub that Viva has planned, which would also include hydrogen vehicle fuelling and large-scale solar power generation.

Environmentalists say ongoing gas use and projects will slow down Victoria’s transition to renewables and amplify climate change impacts.