Victorian onshore conventional gas exploration to restart in July

A restart of Victoria’s onshore conventional gas industry is expected July 1, 2021 following 3 years of detailed scientific investigations by the State government which found that such industry would not compromise the state’s environment or the agricultural sector.

However, the restart of exploration and development does not include coal seam gas or hydraulic fracturing, both of which are permanently banned in Victoria. The fracturing ban was added to Victoria’s Constitution in March.

The hiatus on all onshore gas exploration and development began with an administrative moratorium in 2012 in response to community concerns. The government passed a fracturing ban amendment to its resources legislation in 2017 and halted all conventional exploration and development activities until June 30, 2020.

During this time, a research program was implemented to understand the potential for new onshore conventional gas discoveries and the risk, benefits, and impacts of allowing the industry to continue.

Commercially feasible conventional gas resources yet to be discovered are likely in the onshore Otway and Gippsland basins and their development would not compromise the Victorian groundwater supplies of the agricultural sector, the study concluded.

The industry will proceed under a new regime of best practice, the hallmarks of which include stronger provisions for community engagement and a strict code of practice for well management.

The regulatory impact statement consultation period for the new regulations is expected to open early this month to enable assessment and feedback from stakeholders.