The Victorian government has announced plans to expedite approvals for new gas supply projects, a move welcomed by industry leaders as crucial for addressing potential gas shortages.

Premier Jacinta Allan’s Economic Growth Statement outlines a strategy to accelerate new gas extraction, storage, and transmission projects alongside renewable initiatives.

Australian Energy Producers Chief Executive Samantha McCulloch praised the decision but highlighted the need for immediate action.

“The Victorian government has recognised it needs to act to bring on new gas supply for the millions of homes and businesses in the state that depend on natural gas,” McCulloch stated.

Energy regulators, gas users, and producers have long warned of impending gas shortfalls in Victoria and NSW, potentially occurring as early as 2027.

McCulloch noted that these warnings have largely been ignored until now.

While acknowledging the positive step, McCulloch cautioned that Victoria faces challenges after years of policies that discouraged gas investment.

“After more than a decade of demonising gas and driving away investment, Victoria is starting on the back foot,” she said.

The announcement comes as Victoria grapples with dwindling gas supplies.

McCulloch highlighted that the state possesses significant undeveloped onshore and offshore gas resources, with explorers and producers ready to collaborate with the government.

“Victoria is running out of gas because it has failed to ensure supply kept up with demand. Today’s announcement needs to represent a turning point in the Victorian government’s energy policy,” McCulloch concluded.

As the state aims to balance its energy needs with environmental concerns, this policy shift marks a significant change in Victoria’s approach to gas supply and energy security.