The federal government has approved gas exploration permits in the waters off South Australia, Victoria, and Tasmania.

The federal government has approved permits to explore waters between South Australia, Victoria, and Tasmania for the establishment of new offshore gas wells. These approvals in Commonwealth waters aim to secure gas supplies for the east-coast energy market, addressing concerns about a potential shortfall if new supplies are not secured. Both the energy market operator and the competition watchdog have warned of possible energy shortages within three to four years, despite Australia being one of the world’s largest producers of liquid natural gas (LNG). Most of the gas extracted in Australia is contracted for export.

Esso and Beach Energy are expected to take up the exploration permits for the Otway Basin, which extends from south-west South Australia to north-west Tasmania, and the adjoining Sorrell Basin, west of King Island and Tasmania. Additionally, the federal government is offering several exploration permits to resources companies operating off the West Australian coast.

Resources Minister Madeleine King stated that gas is “critical for the transition” to renewable energy, but emphasized it will become “a diminishing proportion of our energy mix to 2050.” The federal government aims for 82 percent of electricity to be generated by renewable sources by 2030 and to achieve economy-wide net zero emissions by 2050.

“As ageing coal generation comes offline in the coming years, gas will continue to be needed to firm renewable energy generation and as a back-up during peak energy-use periods,” Ms. King said. Labor has faced criticism for supporting new gas developments due to their contribution to greenhouse gas emissions, with concerns raised even among Labor backbenchers.