Victoria Adopts Frack Ban, Onshore Moratorium

The Australian state of Victoria’s Fracking Ban Bill was adopted by the state’s Parliament March 7.

“This is a historic day for our state,” said Victoria’s resources minister Wade Noonan: “We promised we would ban fracking – and that is exactly what we have done” he said of the state’s ruling Labour government.

Noonan said the bill also extends a moratorium on conventional gas exploration until June 30 2020.

The government signalled its determination to push through both its Fracking Ban and conventional gas exploration moratorium a month ago. Both measures may have encouraged independent Cooper Energy press ahead with its offshore Sole development, with first gas targeted for 2019.

The state government has said that farmers across Victoria had lobbied for a ban on unconventional gas for years – while also expressing concerns about onshore conventional gas activities. Onshore explorer Lakes Oil though is suing the state for A$2.7bn over the frack ban and moratorium.

Victoria's Labour premier Daniel Andrews has opposed fracking (Credit: Government of Victoria)

Gas being ‘squeezed out’, argues APPEA

Australia’s upstream industry association APPEA however said this week that Australia should emulate the US in slashing emissions by increasing use of gas in power generation. “We have the crazy situation where gas-fired generation is being squeezed out of the market by low-cost coal and subsidised wind and solar power,” said APPEA’s CEO Malcolm Roberts.

He said an Independent Review into the Future Security of the National Electricity Market for Canberra by Alan Finkel, the Australian government’s chief scientist, was “an opportunity for Australia to get its gas policies right” and pointed out that: “One of Dr Finkel’s key recommendations should be the immediate removal of bans and moratoriums on natural gas supply on the east coast.”

This week too, APPEA filed its submission to Canberra’s review into national taxation of oil, gas and LNG. The review follows an audit last year that found North West Shelf LNG underpaid royalties, by claiming deductions – some of which unjustified -- to the tune of A$5bn (US$3.73bn) in 2014-15.

Australian gas production is mostly in Western Australia and Northern Territory, especially offshore, plus onshore coalbed methane in Queensland. A significant proportion of gas from those three states is liquefied for export as LNG to world markets.

Mark Smedley