Vic Gov Greenlights Offshore Gas Storage to Boost Supply Security

The Victorian Government is rolling out legislation to permit offshore gas storage projects in its waters. This move aims to enhance gas storage capabilities while helping reduce demand for gas, as the state transitions to a cleaner energy future. Energy and Resources Minister Lily D’Ambrosio and Planning Minister Sonya Kilkenny presented the bill to the Victorian Parliament to kick-start the consultation process for the state’s energy transition.

Minister D’Ambrosio emphasized that the new legislation will bolster gas supply while supporting Victorian households in transitioning to electric alternatives. “Our legislation allows the development of offshore gas storage projects, helping secure gas supply as we encourage Victorians to electrify their homes and save money from day one,” she said.

To ensure Victorians’ voices are heard during the transition, the government introduced the Building Legislation Amendment and Other Matters Bill 2024. The bill paves the way for consultations on electrifying homes when gas appliances reach the end of their lifespan. Minister Kilkenny stated, “We’re listening to Victorians on how we want to transition while helping households switch to electric appliances and save money.”

The proposed legislation will not affect gas cooktops, commercial gas appliances, or the use of LPG in homes. However, all new homes requiring a planning permit must already be built fully electric. The government is considering expanding this requirement to cover more new homes and commercial buildings as part of its energy transition.

Victoria remains Australia’s largest user of residential gas, with over two million households connected to the gas network. Converting homes from gas to electric could save an average family $1,700 annually, with potential savings of $2,700 if solar panels are added.

The State Government plans to release draft regulations in December 2024, followed by a public consultation period. Victorians will be invited to provide input via Engage Victoria, helping shape the future of the state’s energy policy.

The Offshore Petroleum and Greenhouse Gas Storage Amendment Bill 2024 aims to leverage offshore gas reservoirs to store gas, increasing supply security during high-demand periods, particularly in winter. The bill provides a clear framework for these projects, ensuring regulatory oversight and accountability.

By expanding offshore gas storage, the government aims to enhance gas reliability for electricity generators, which currently supply 2-5% of Victoria’s power needs. Increased storage capacity is expected to stabilize supply during peak demand, ensuring energy security for the state.

As Victoria moves toward electrification, EServices4U is ready to help households and businesses make the switch to sustainable energy solutions. From energy-saving consultations to solar installations and energy-efficient systems, we offer services to ensure your transition is smooth, cost-effective, and environmentally friendly. Visit www.eservices4u.com.au to learn more about how we can support your energy needs.