Victorian Government to lift moratorium on onshore conventional gas

THE state Labor Government will allow onshore conventional gas exploration and development to resume next year but the move has angered environmental groups, who have described it as “unnecessary and irresponsible”.

On Tuesday, as well as a bill enshrining its ban on fracking and coal seam gas exploration in the Victorian Constitution, Labor also introduced a bill lifting the moratorium on onshore gas exploration and production, which would be allowed to take place from July 2021.

Labor says its decision follows three years of detailed investigation by the Victorian Gas Program, which found an onshore conventional gas industry “would not compromise the state’s environmental and agricultural credentials”.

The program reportedly identified potentially significant onshore conventional gas resources in the Otway Basin, which stretches across the border to South Australia.

The estimated resources are being touted as generating more than $310 million annually for regional economies and creating 6,400 jobs.

“We’re backing the science to create jobs, boost energy supply and support regional communities across the state,” Premier Daniel Andrews said.

“We promised to enshrine our historic ban on fracking in the constitution and we’re delivering – to protect farming communities, and our huge food and fibre sector.”

Victorian Chamber of Commerice chief executive officer Paul Guerra said lifting the moratorium had been a long-standing priority of the chamber, which strongly advocated for the moratorium to be replaced “with a regime to manage the risks of individual gas supply projects on a case-by-case basis”.

“This decision will put Victorian businesses in a better position to emerge stronger from the coronavirus crisis.”

Environment Victoria chief executive officer Jono La Nauze said it was “well past time for any talk of drilling more gas”.

“The Andrews Government has just joined a long line of successive governments putting the profits of the gas cartel ahead of the interests of Victorian households and business.

“Gas exploration and new gas projects would lock in the burning of fossil fuels in Victoria for the next 20 or 30 years. It’s unnecessary, irresponsible, and a betrayal of all who have touched by the dangers of climate change.

“It is critical the Premier come clean with Victorians on how he plans to reduce Victoria’s greenhouse gas emissions in line with limiting global warming below 1.5 degrees.”