In 2020, the Petroleum Legislation Amendment Bill 2020 passed the Legislative Council, which allowed the resumption of onshore gas exploration and development activity from 1 July 2021, once a best practice regulatory framework is in place.
All new gas will be prioritised for local use and the Victorian Government said its production could generate up to $310 million annually for regional economies.
While fracking and CSG remains banned, the Australian Petroleum Production and Exploration Association (APPEA) said the end of the gas moratorium was a step in the right direction for the state.
“Victoria has abundant local onshore resources but for years has rather imported gas from other states,” said APPEA Victoria Director Ashley Wells.
“Incredibly, it has even considered importing it from overseas with the planned import terminal.
“The cheapest gas available to Victorian homes and businesses is the gas they are standing on and lifting of the moratorium is a good first step to getting on and developing it.
“Now that the ban is lifted, the industry can resume the exploration and development of local gas resources – and it is a given that we must at all times meet the highest environmental and operating standards at all times.
“The lifting of the moratorium should also give comfort that Victoria’s manufacturing base, and the thousands of local jobs it generates, because all Victorians should be entitled to benefit from viable supplies of locally produced gas for years to come.”
Studies undertaken by the Victorian Government have indicated there are likely to be commercially feasible onshore conventional gas resources yet to be discovered in the Otway and Gippsland basins.
For more information visit the Earth Resources website.