The federal and Victorian state governments have approved the production licence for Amplitude Energy’s Annie gas field project in the Otway Basin, paving the way for more affordable locally produced gas.
The project is expected to provide the equivalent of more than a third of Victoria’s annual gas consumption.
With works slated to begin next year, the field is on track to deliver gas from 2028, a timeframe described as crucial for the East Coast market as legacy supplies from the Bass Strait continue to dwindle.
The announcement comes as the Australian Energy Market Operator (AEMO) recently pushed back its forecast for peak-day gas shortfalls by one year to 2029, largely due to a decrease in residential demand driven by state electrification programs.
However, for heavy industries and manufacturers that cannot easily switch to electricity, the new supply is seen as a vital lifeline.
Minister for Energy and Resources Lily D’Ambrosio stated that the approval is a responsible move to manage the transition.
“This approval unlocks more affordable, locally produced gas for Victorians, helping to secure supply for the industries that still rely on it,” she said.
In tandem with the Annie project, the government approved the Offshore Petroleum and Greenhouse Gas Storage Amendment Regulations 2026.
This provides the regulatory green light for the AU$1 billion Golden Beach production and storage project in Gippsland.
Once operational, the Gippsland facility will increase Victoria’s gas storage capacity by 70 per cent, further insulating the state against winter price shocks.
The Victorian Chamber of Commerce and Industry (VCCI) has welcomed the sensible decision, describing it as an important and practical step towards securing Victoria’s energy future.
Acting Chief Executive Amelia Bitsis noted that gas remains essential for thousands of small businesses and major exporters.
“This is a positive and sensible step toward ensuring Victoria has the reliable and affordable energy supply businesses and households need during the transition to net zero.
“We have consistently said gas will remain an essential part of Victoria’s energy mix for some time yet, particularly for manufacturing, industrial operations and thousands of small businesses that rely on it every day.”
