The Victorian Government is introducing legislation to allow offshore gas storage projects in Victorian waters, aiming to secure additional storage capability and reduce demand for gas.
Victorian Minister for Energy and Resources, Lily D’Ambrosio, and Victorian Minister for Planning, Sonya Kilkenny, introduced the legislation into the Victorian Parliament to allow offshore gas storage projects in Victorian waters and enable consultation on Victoria’s energy transition, so the voices of industry and community are heard.
“Our new legislation paves the way for the development of offshore gas storage projects, to help secure gas supply while we cut gas demand by helping Victorian households electrify and save from day one,” Ms D’Ambrosio said.
To hear from the community, the Victorian Government is introducing the Building Legislation Amendment and Other Matters Bill 2024, which it said is necessary to permit formal consultation on options for electrifying Victorian homes when existing gas appliances reach end of life.
“We’re listening to Victorians on how we want to transition as a state while we help households to switch to electric appliances, so they can save money,” Ms Kilkenny said.
Gas cooktops in homes, gas appliances in existing commercial buildings and industrial, agricultural and factory facilities, as well as the use of LPG will not be impacted. All new homes that need a planning permit are already required to be built all electric. The consultation will consider expanding this requirement to all new homes and many commercial buildings.
Victoria is the largest user of residential gas in Australia, with two million households and businesses connected to the reticulated gas network. Converting an existing home from gas to all-electric is expected to save the average family $1,700 per year and $2,700 per year if rooftop solar is added.
The State Government will release draft regulations for consultation in December 2024, followed by an extended public consultation period during which formal submissions can be made via Engage Victoria.
Victoria has used onshore gas storage to meet demand throughout winter for many years. The Offshore Petroleum and Greenhouse Gas Storage Amendment Bill 2024 will allow gas to be stored in empty gas reservoirs offshore, to boost supply security.
Gas can be safely stored in underground reservoirs deep in rock layers, where it formed naturally before being extracted. The bill gives investment certainty to these critical projects, while also strengthening accountability and regulatory oversight of proponents who operate these storage sites.
The Victorian Government said that increasing Victoria’s gas storage capacity will increase reliability and security during periods of high demand. It will also support our gas-powered electricity generators, with gas currently providing around two to five per cent of Victoria’s total electricity generation on average.
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