The South Australian state government is considering lifting a decade-old ban on fracking in the state’s South East, citing an urgent need to strengthen energy security.
SA Premier Peter Malinauskas told 5AA that a bill will be introduced to Parliament to lift the moratorium on fracking, which was previously introduced in 2018, ABC News reported.
Hydraulic fracture stimulation, or fracking, is used to extract underground oil and natural gas. While fracking is currently permitted across most of South Australia, the South East has remained a no-go zone for the method.
However, with the Australian Energy Market Operator (AEMO) projecting a gas supply shortfall for south-eastern Australia as early as 2030, Premier Peter Malinauskas argued the ban is no longer tenable.
“I don’t know why, if we’ve been doing this safely since the 60s in one part of our state, it just doesn’t make sense to ban it in another,” the Premier told 5AA.
He clarified that the bill would not automatically authorise fracking, but rather allow mining companies to conduct preliminary exploration and scientific assessment to determine whether viable resources are present.
“It removes the ban on it, it provides the ability for mining companies to be able to do the requisite exploration, the scientific studies, to work out whether or not there is an economic resource there, and then go through the process to get the approvals to be able to extract it in conjunction with engagement of local landowners,” he said.
The move has been lauded by Australian Energy Producers, with Chief Executive Samantha McCulloch describing it as a pragmatic and necessary step.
“Natural gas is essential to South Australia’s energy security and industrial competitiveness, providing reliable energy for households, businesses, and major industries,” McCulloch said.
She noted that the state’s gas industry already contributes AU$8 billion annually to the economy and supports over 14,000 jobs.
“This announcement is a pragmatic and necessary step to ensure potential gas resources in the south east can be properly assessed under South Australia’s robust environmental and regulatory framework.”
Despite the industry support, the Premier faces a significant political and community hurdle.
Malinauskas admitted the change would ruffle a few feathers and conceded the bill might fail in the Upper House without the support of the Liberal Party and One Nation.
Environmental advocates and local landholders remain wary of fracking’s impact on groundwater. However, the government insists that any future extraction would be subject to South Australia’s robust regulatory framework and extensive engagement with local landowners.
The policy shift aligns with the state’s broader strategy to secure domestic gas, following a recent reserve agreement with Santos to support the transformation of the Whyalla Steelworks.
