The Victorian government has lifted the moratorium on exploration for conventional oil and gas resources, at the same time placing a permanent ban on hydraulic fracturing and on coal seam gas exploration in the state.
Victorian Premier Daniel Andrews said the government has introduced two bills into the state parliament to give effect to the actions.
Hydraulic fracturing was banned in Victoria in 2017 (OGJ Online, Nov. 26, 2016). During the 2018 election campaign, the Andrews-led Labor Party promised to enshrine that ban in the Constitution to make it harder for any future government to overturn.
The decision to allow a resumption of conventional onshore exploration follows 3 years of detailed investigations by the Victorian Gas Program which found an onshore conventional gas industry would not compromise the State’s environmental and agricultural credentials.
The investigation was chaired by Victoria’s lead scientist, Dr. Amanda Caples, who chaired an independent Stakeholders Advisory Panel including farmers, environmentalists, industry representatives, and local councils.
The studies identified potentially significant onshore conventional gas resources in Victoria, particularly in the Otway basin in the west of the state into South Australia where there is existing production and infrastructure.
Priority for any gas produced from future onshore production licenses will be given to the domestic market.
The legislation provides for an orderly restart of conventional gas exploration and development from July 1, 2021.
