Australia Approves New Gas Field Near the Twelve Apostles to Enhance Supply

Amplitude Energy's new gas drilling project in Victoria's Otway basin has obtained approval. Environmental groups are afraid that the Annie gasfield project, which is set to begin production in 2028, could disrupt a pristine ocean habitat and impede climate-change efforts.

The project, located 9 km off Peterborough and Port Campbell near the Twelve Apostles, could provide 65 petajoules of gas, representing over a third of Victoria's annual gas usage.

Energy and resources minister Lily D'Ambrosio noted that despite decreasing fossil fuel demand due to electrification, the gas field would maintain a sufficient gas supply for non-electrifiable industries.

Environmental Risks & Climate Impacts

Labour has approved its second major gas project, following the 2022 election, where former premier Daniel Andrews focused on revitalising the State Electricity Commission to expedite the renewable energy transition, aiming for 95% renewable energy by 2035.

Greenpeace Australia's Joe Rafalowicz criticised the Otway project for endangering the ocean environment and climate.

Notably, Joy Toose from Environment Victoria warned that it would hinder the clean energy transition in the state, noting that current and future fossil fuel developments have exhausted the carbon budget needed to limit global heating to 2°C.

She stressed that every approved gasfield complicates and increases the cost of achieving a safe climate.

Besides, Alison Reeve, energy and climate programme director at the Grattan Institute, noted that while moving away from gas is sensible, there are challenges for Victoria's industrial base, which is significantly reliant on gas, particularly in manufacturing and heat generation processes.

Political Tensions in Victoria’s Energy Transition

The Australian Energy Market Operator has delayed its peak-day gas shortfall forecast to 2029, attributing this change to new infrastructure, greater supply, and lower consumption. This announcement coincides with the Victorian Coalition's pledge to review and potentially halt all major transmission line projects and renewable energy zones if they win the upcoming election in November.

Moreover, the opposition is calling for a pause on the VNI West transmission line, a 240km project connecting Victoria and New South Wales, and the Western Renewables Link to which it will be connected.

Consequently, Nationals leader Danny O’Brien stated that VNI West has “completely lost social licence,” attributing this to “draconian laws” enacted last year that permit government agency VicGrid and its contractors to access private land without landholder consent.

In Melbourne, the opposition proposes “urban solar parks” to facilitate solar and battery installations on commercial and industrial rooftops, utilising the vast roof space available. This approach aims to harness energy closer to storage locations, thereby minimising the need for additional transmission lines, according to O’Brien.

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Debate on Transmission & Renewable Infrastructure

Reeve emphasised that increasing rooftop solar cannot effectively replace the need for new transmission lines, noting that many commercial buildings are not designed to support the weight of additional solar infrastructure.

She advocated for a resilient energy system that includes a variety of sources—wind, large-scale and small-scale solar, batteries, pumped hydro, and some gas—highlighting that transmission is essential to integrate these diverse energy sources.

According to Reeve, building new transmission lines from renewable energy sources is essential for efficient electricity distribution. Toose criticised the opposition's plan, arguing it would harm Victoria's renewable energy sector and increase power bills for households and businesses.

Ultimately, Victorian Greens leader Ellen Sandell criticised Labour and the Coalition for prioritising fossil fuel corporations over the welfare of Victorians and the environment, in light of Labour's new gas field and the Coalition's transmission lines plan.

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