Victoria Lifts Ban on Onshore Gas Exploration

Australian state of Victoria March 17 announced that a moratorium on onshore conventional natural gas exploration and development would be lifted in mid-2021 but a ban on hydraulic fracturing would remain in place.

The moratorium, which came into effect in early 2017, was followed by a period of extensive scientific investigation and community consultation led by the office of the Victoria's lead scientist and a stakeholder advisory group.

The Australian Petroleum Production and Exploration Association (Appea) has welcomed the decision and said it paves the way for exploration of possible natural gas resources in the state to resume, which over time could lead to more gas supply flowing into Victoria's gas market.

“The government’s decision to lift the moratorium is a step in the right direction to help ensure that Victoria continues to have ongoing supplies of natural gas into the future. The Australian Energy Market Operator (AEMO) has forecast shortfalls in Victorian gas supply as soon as 2024 if more supply is not developed. Shortages could happen earlier if winter demand is high,” Appea CEO Andrew McConville said.

McConville said the lifting of the moratorium was aligned with Victoria’s renewable energy targets and its position on reducing emissions.

“As a low emissions fuel, natural gas has an important role to play in helping Victoria reach its emissions reduction targets,” McConville said.