The Victorian Government has passed the Offshore Petroleum and Greenhouse Gas Storage Amendment Bill 2024, a key legislative move aimed at bolstering the state’s gas supply.
The new law allows for gas to be stored offshore in underground rock reservoirs – similar to the natural formation process of gas before extraction.
This approach aims to stabilise Victoria’s gas supply, mitigating price fluctuations during peak demand periods and providing a reliable backup for gas-powered electricity generation to help balance the grid.
Lily D’Ambrosio, Victoria’s Minister for Energy and Resources, said the government is ensuring a safe and reliable energy supply is maintained as the state continues building the renewable energy of the future and works towards net zero emissions by 2045.
“We’ve just unlocked new offshore gas storage projects that will be critical to helping us keep the lights on, protect consumers from high energy prices and support industry through the transition,” she said.
One approved project, the Golden Beach Energy Storage Project developed by GB Energy, is set to become Victoria’s first offshore gas storage facility.
Located off the coast of Gippsland, the project has cleared a comprehensive environmental review, including public consultation, and now moves to the final investment stage.
The facility will initially produce gas for local use before transitioning into a storage role, offering an additional 12.5 petajoules of capacity – almost a 50 percent increase in Victoria’s storage capabilities.
Expected to commence production in winter 2027, the Golden Beach project will provide approximately 30 petajoules of gas for the domestic market in its first year—enough to meet a quarter of the annual consumption of Victorian households and small businesses.
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