The Victorian State Government is securing a gas supply while building cheaper renewable energy for the future.
The Offshore Petroleum and Greenhouse Gas Storage Amendment Bill 2024 has passed the Victorian Parliament. It supports the development of additional gas storage capability to help maintain a secure and reliable gas supply.
This legislative change means gas can now be stored offshore in underground reservoirs deep in rock layers, where it formed naturally before being extracted.
Minister for Energy and Resources, Lily D’Ambrosio, said, “We’re ensuring a safe and reliable energy supply is maintained as we get on and build the renewable energy of the future and work towards net zero emissions by 2045.”
“We’ve just unlocked new offshore gas storage projects that will be critical in helping us keep the lights on, protecting consumers from high energy prices, and supporting industry through the transition.”
This additional gas storage will ensure that supply can be made available when and where it is most needed. This will reduce Victoria’s exposure to swings in gas prices during periods of high demand and provide a secure supply for gas-powered electricity generators to balance the electricity system when required.
If approved, one proposed offshore gas storage project could provide approximately 12.5 petajoules of additional gas storage, increasing Victoria’s storage capacity by almost 50 per cent.
The Golden Beach Energy Storage Project, developed by GB Energy, will become Victoria’s first offshore gas storage facility. It will be located off the coast of Gippsland. The project has undergone a rigorous Environmental Effects Statement process, including public consultation, and can now proceed to the final investment stage.
The Golden Beach Gas Project will complete a short initial production period before transitioning to a storage facility. Over the course of a year from winter 2027, the project is expected to deliver 30 petajoules of gas for the domestic market—about a quarter of Victoria’s annual household and small business consumption.
Increasing our gas storage capacity will improve reliability and security during periods of high demand. It will also support our gas-powered electricity generators, with gas currently providing around two to five per cent of Victoria’s total electricity generation on average.
This means Victoria will keep the lights on and power the industry as the state progresses to 95 per cent renewable electricity by 2035. Gas will provide the remaining five per cent to maintain reliable and secure electricity supplies.
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