The Offshore Petroleum and Greenhouse Gas Storage Amendment Bill 2024 has passed the Victorian Parliament, meaning gas can now be stored in underground reservoirs deep in rock layers, where it formed naturally before being extracted.
The legislative change aims to support the development of additional gas storage capability to help maintain secure and reliable gas supply.
The Victorian Government said that the additional gas storage will ensure that supply can be made available when and where it is most needed, which will reduce the state’s exposure to swings in gas prices during periods of high demand and provide secure supply for gas-powered electricity generators to balance the electricity system when required.
The State Government said that one proposed offshore gas storage that has been approved could provide approximately 12.5PJ of additional gas storage, increasing Victoria’s storage capacity by almost 50 per cent.
The Golden Beach Energy Storage Project, developed by GB Energy, will become Victoria’s first offshore gas storage facility. It will be located off the coast of Gippsland and has already undergone a rigorous environment effects statement process that included public consultation and is now able to progress to the final investment stage.
The Victorian Government said that the Golden Beach Gas Project will complete an initial short period of production before it can be transitioned to a storage facility.
The project is expected to deliver 30PJ of gas for the domestic market over 12 months from winter 2027, which is about a quarter of the state’s annual household and small business consumption.
The State Government said that increasing Victoria’s gas storage capacity will increase reliability and security during periods of high demand and will support gas-powered electricity generators, with gas currently providing around two to five per cent of the state’s total electricity generation on average.
As Victoria progresses to 95 per cent renewable electricity by 2035, gas is expected to provide the remaining five per cent to maintain reliable and secure supplies of electricity.
Victorian Minister for Energy and Resources, Lily D’Ambrosio, said, “We’re ensuring a safe and reliable energy supply is maintained as we get on and build the renewable energy of the future and work towards net zero emissions by 2045.
“We’ve just unlocked new offshore gas storage projects that will be critical to helping us keep the lights on, protect consumers from high energy prices and support industry through the transition.”
