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Victorian Opposition backs gas development

10 October 2017 , , , ,

A Victorian Liberal Nationals Government will legislate to allow onshore conventional gas exploration and production in Victoria on a case-by-case basis if it wins power next year.

The new policy will create a new royalty sharing scheme that will allow local landowners to benefit from gas produced from beneath their land.

Landowners will receive a 10 per cent share of the royalty paid to government of the net post-wellhead sales value of recovered gas.

The rights of landowners will be protected with a right of veto over conventional gas exploration and production on their land.

“This policy will help put the brakes on soaring gas prices that are currently hurting Victorian households and businesses,” said Victorian Opposition Leader Matthew Guy.

“Our policy will provide cheaper gas and create more jobs while protecting our environment and farmland.

“Our policy keeps Victoria’s fracking ban while securing the gas resources we need.

The Liberal Nationals will continue to support the ban on fracking and CSG exploration and production in Victoria to protect farmland and water supplies.

The Liberal Nationals will also introduce a domestic gas policy that will ensure new gas discoveries benefit the state as a whole.

“The conventional gas industry has successfully existed in Victoria for decades and together with Victoria’s world-class brown coal reserves, has previously been responsible for our state’s position as Australia’s low-cost energy power house,” said Mr Guy.

“Allowing the private sector to locate new sources of gas will help to bring more supply into the Victorian energy market and reduce cost pressures.

“Victorians will have a clear choice on energy policy at the next election.”

Victoria currently has a moratorium on onshore gas development until 2020, and permanently banned fracking earlier this year.