Victorian gas company Lakes Blue Energy says the Allan...

Victorian gas company Lakes Blue Energy says the Allan government has finally “woken up” to the need for gas, ahead of severe predicted shortfalls.

Premier Jacinta Allan on Monday revealed her government was preparing to introduce legislation to parliament to support offshore gas storage. Ms Allan said gas “has a role in our energy transition” in a distinct public softening of the government’s stance on the resource.

The Victorian opposition says there is a “clear division” between Premier Jacinta Allan (left) and Energy Minister Lily D’Ambrosio on the future of gas. Simon Schluter

Lakes Blue Energy, formerly known as Lakes Oil, is about to seek approval for a project in Gippsland that it says could provide 10 per cent of Victoria’s gas needs from late 2026.

Chief operating officer Tim O’Brien said if approval was granted for the project, which does not require fracking, drilling would begin in mid-2025. He added that it could then produce 50 terajoules of gas daily, providing about 10 per cent of Victoria’s gas needs for the next 20 years by late 2026 or 2027, which is when the state is expected to start facing shortfalls.

The former Liberal government placed an “administrative moratorium” on onshore gas exploration and development in 2012, which was lifted only in 2020. Fracking and coal seam gas mining have been banned since 2017.

Advertisement

“We’re very bullish about the exploration and have been for some time. It’s been a frustrating road, but it looks like reality is finally dawning on the government – we need reliable, locally sourced energy,” Mr O’Brien told The Australian Financial Review on Monday. “People are realising we are desperate for gas because renewables are a long way from being able to provide reliable energy.”

extract