Gas extraction licence approved for project on Victoria's Great Ocean Road
The government says gas extracted from the project at Port Campbell will be for home and business use in Victoria. (Flickr/ Daniele Civello)
The Victorian government has approved the first new application for gas extraction in a decade for a project in the state's south-west.
The government approved a plan by Beach Energy Enterprise to supply gas from an offshore field near Port Campbell, on the Great Ocean Road.
The application was the first in Victoria for new gas extraction since 2014.
The government said all gas from the project would be for Victorian homes and businesses, and had already been factored into the state's forecast gas supply.
"We've always been clear gas has a role to play in Victoria's energy transition," Energy Minister Lily D'Ambrosio said.
"It's critical we support Victorian homes and businesses that can electrify, to do so — helping Victorians save on their energy bills and preserving gas supply for use in businesses, manufacturing and power generation."
There are no restrictions on bringing new gas supplies online in Victoria through conventional means, however fracking and coal seam gas activities are banned.
The government said there were nine exploration permits onshore in Victoria and five offshore exploration permits.
Opposition welcomes approval
Opposition leader John Pesutto welcomed the approval of the gas project but raised concerns about the security of the state's energy supply.
He said more gas projects needed to be approved to account for a potential shortfall in energy once Yallourn Power Station went offline in 2028.
"Despite the approval of this gas project … Victoria still faces the very real risk of gas shortfalls in the future," he said.
"We know that there's not going to be enough wind and solar to replace Yallourn.
"Gas has to play that transitional role."
Mr Pesutto said the government had been "sending out signals to the market" that new gas projects would not be approved, however many existing homes would continue to require it.
"Households and businesses have very real needs," he said.
"Many households and businesses still rely on gas and you can't simply just ban it.
"I would hope it would bolster confidence, but I don't think it will."