The Victorian and federal governments have greenlit a new offshore gas drilling project located just 9 kilometers from the shores of Port Campbell and Peterborough, close to the iconic Twelve Apostles tourist site.
Project Overview
Australian energy firm Amplitude Energy plans to launch the Annie Gas Field Project next year, with gas production slated to begin in 2028. The initiative aims to supply approximately 4 percent of the Australian east coast’s gas demand over a five-year period.
This development addresses a projected gas supply shortfall in Victoria, as existing reserves in the Bass Strait deplete. Despite ongoing efforts to shift households and businesses to electric alternatives, the project targets industries unable to make the switch.
Government Perspectives
Victorian Energy and Resources Minister Lily D’Ambrosio emphasized a responsible approach to the energy transition. “This approval unlocks more affordable, locally produced gas for Victorians, helping to secure supplies for the industries that still rely on gas,” she stated.
Federal Resources Minister Madeleine King noted that the gas will serve domestic needs only, potentially mitigating future shortages. The federal government is also inviting nominations for new offshore exploration areas in Tasmania, Victoria’s Gippsland, and Bass basins.
Environmental and Community Reactions
The approval is likely to draw criticism from environmental groups and the Victorian Greens, who argue it hinders the shift away from fossil fuels. Previous drilling proposals along the southwest Victorian coast have faced strong opposition over ecological concerns.
An Amplitude Energy spokesperson highlighted extensive community consultations and the project’s minimal visual footprint. “As the project’s infrastructure is subsurface, it is not at all visible and therefore it will not include any visual impact on the area apart from the temporary drilling phase,” the spokesperson said. Gas operations have coexisted with tourism, agriculture, and local industries in the region for over 20 years.
Market and Industry Views
The Australian Energy Market Operator (AEMO) recently delayed its peak-day gas shortfall prediction to 2029, crediting lower consumption and added supplies. However, it still calls for investments to prevent declines, projecting a 52 percent drop in Victoria’s gas production by 2030 against a 10.5 percent consumption reduction.
The Victorian Chamber of Commerce and Industry praised the Otway Basin project. Acting chief executive Amelia Bitsis stated, “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.”
Coastal communities and environmental advocates continue to challenge similar Otway Basin explorations, citing potential environmental risks and questioning claims of gas shortages.
