The Australian government has taken a significant step towards enhancing the country’s long-term energy security by awarding new offshore acreage for petroleum exploration and carbon capture and storage (CCS) opportunities.
This move comes as a response to growing concerns about potential gas supply shortfalls in the coming years.
Resources Minister Madeleine King announced the finalisation of permits for several energy companies, including Esso, Beach Energy, Chevron, INPEX, Melbana, and Woodside Energy.
These permits will allow exploration in various regions, including the Otway and Sorrell Basins on the east coast and areas off Australia’s west coast.
Samantha McCulloch, Chief Executive of Australian Energy Producers, welcomed the announcement, emphasising the critical role of natural gas in Australia’s energy transition and net-zero goals.
“Exploration is an essential part of this — as the first step in delivering the natural gas Australia needs to power industry, back up renewables and fast-track the phase-out of coal,” McCulloch stated.
The decision aligns with the government’s Future Gas Strategy, which recognises the ongoing importance of natural gas in Australia’s energy mix through 2050 and beyond.
This strategy aims to balance the country’s commitment to renewable energy with the need for reliable backup power sources.
However, the energy sector faces challenges.
Recent reports from the Australian Competition and Consumer Commission (ACCC) and the Australian Energy Market Operator (AEMO) have warned of potential gas supply shortfalls as early as 2027.
These reports highlight the urgency for developing new gas sources to meet domestic demand and support the transition to clean energy.
The government’s decision also includes the approval of 10 permits for CCS exploration, recognising the technology’s potential in reducing emissions and supporting Australia’s net-zero ambitions.
McCulloch emphasised the importance of CCS in decarbonising Australia’s economy and positioning the country as a regional leader in this technology.
While this announcement is seen as a positive step, industry leaders are calling for further action.
McCulloch urged the government to open the next round of petroleum acreage permits promptly to ensure a steady pipeline of new gas projects.
She noted that oil and gas exploration in Australia is at an all-time low, emphasising the need for policy certainty and regulatory stability to attract investment.
As Australia navigates its energy transition, balancing immediate energy needs with long-term sustainability goals remains a complex challenge.
The recent acreage awards represent a significant move towards addressing these concerns, but ongoing efforts will be crucial to secure Australia’s energy future.
