close
close

Plan to fix Victoria’s gas shortage draws pushback from locals and environmentalists

Plan to fix Victoria’s gas shortage draws pushback from locals and environmentalists

A plan to import natural gas into Victoria to protect the state from energy shortages is being opposed by locals and environmental groups.

Victoria is facing a natural gas shortage as supplies traditionally from Bass Strait run out.

A new floating gas terminal off the coast of Geelong is designed to be a cost-effective solution for the 90 per cent of Victorian households that rely on gas stoves and heating.

However, critics of the project say the terminal, which will transport gas from other parts of Australia or the world, will be located too close to homes and businesses.

They also claim that the project’s environmental impacts have not been properly assessed.

Energy company Viva Energy has proposed the LNG gas import terminal to be built next to its Geelong refinery in Corio Bay, with the capacity to supply 80 per cent of Victoria’s annual gas consumption.

A map showing a proposed gas terminal at Geelong.

Aerial view of the proposed gas terminal. (Viva Energy)

Once Victoria reduces its dependence on gas, Viva Energy plans to relocate the floating gas terminal and repurpose the remaining infrastructure.

Lachlan Pfeiffer, Viva Energy’s director of strategy, said the terminal was the only complete gas solution for Victoria that could be delivered in time for forecast shortages in the winter of 2028.

“Our project is about efficiently meeting Victoria’s energy needs at the lowest cost by delivering gas close to where it is needed most – the large Melbourne and Geelong market,” he said.

Viva Energy submitted an Environmental Effects Statement (EES) to the Planning Minister in October 2022, but was ordered to prepare a further EES to further explore the project’s effects on the marine environment, noise, air quality and underwater Aboriginal cultural heritage.

In response to the supplementary EES, nearly 400 proposals were made to an Inquiry and Advisory Committee (IAC), with some stakeholders set to present their views at a public hearing next month.

An artist's image of a gas terminal in Corio Bay

An artist’s impression of the proposed gas terminal off the coast of Geelong, which Viva Energy claims would have no impact on local wetlands. (Viva Energy)

Concern over pollution and noise

On Saturday, Environment Victoria, Geelong Sustainability and the Australian Conservation Foundation Geelong organized a protest in Norlane, north of Geelong.

About 100 people gathered to voice their concerns, including Tenille Moisel, a member of the North Shore Residents Group.

She said local residents were concerned about the terminal’s proximity to nearby homes.

“We know from other incidents around the world that there’s not a lot of warning, when (an accident) happens, the potential area it can devastate is significant,” Ms Moisel said.

“And the fact that we’re so close — 220 meters from it — actually makes us very concerned.”

Woman standing outside in colorful t-shirt

Tenille Moisel says some locals live a few hundred meters from where a new gas terminal could be built. (ABC News)

Environment Victoria has referred concerns about the project to the state’s planning department, claiming the volume of gas Viva Energy plans to import could be responsible for 30 to 37 per cent of Victoria’s emissions in 2035.

“These estimates are conservative because they do not take into account fugitive emissions, nor emissions from LNG transportation or production,” the filing states.

“It also means that Viva Energy will have a vested interest in slowing the transition from gas to keep its terminal running longer to recoup its investment costs.”

Lawyers acting for Geelong Grammar School have made a statement about noise concerns at the gas terminal and will be heard by the planning minister’s advisory committee next month.

The school also questions the thoroughness of assessments of the ecological impact of dredging and dumping of chlorinated water, as well as the impact on cultural heritage.

About 100 protesters stand under cover with signs and placards

People gathered in Norlane on Saturday in opposition to the proposed new gas terminal. (ABC News: Natasha Schapova)

Environment Victoria’s river and nature campaign manager Greg Foyster said concerns remained about LNG tankers passing through people’s homes and a wetland, as well as the impact dredging would have on sea grass from Corio Bay.

“We hope the Viva proposal is given serious consideration. We believe it should be rejected and we do not believe it is an appropriate location,” Mr Foyster said.

Mr Foyster said he would prefer the State Government to continue the transition away from gas.

“I think the best solution is to stick with the trajectory of helping households get off gas and helping them with the upfront cost of moving from legacy, piped gas systems to efficient electric,” he said.

Viva Energy claims the project will not affect wetlands and is located close to the Victorian transport system, meaning minimal infrastructure would be needed to connect to existing pipeline corridors.

Victoria Gas Current Situation

In June this year, the Australian Energy Market Operator (AEMO) warned of an immediate risk to gas supplies to the east coast amid a surge in demand due to cold weather, a lack of renewable energy and of an outage at South Australia’s largest gas source – the Longford gas plant.

Local gas reserves in Bass Strait, which feeds the Longford gas plant, are expected to decline and AEMO estimates that gas reserves on the east coast may not meet peak demand for several years.

From winter 2028, Victoria is likely to need 32 per cent of its gas supply from liquefied natural gas (LNG) imports, rising to 42 per cent in 2029 and 55 per cent in 2030, according to the east coast gas outlook released this week this by energy consulting company EnergyQuest.

About 100 people gathered with signs and placards against a gas terminal in Geelong

About 100 protesters showed up Saturday to fight the proposal. (ABC News: Natasha Schapova)

The government is creating a way away from gas dependence

The Victorian Government’s Gas Replacement Roadmap supports homes and businesses to move away from gas by electrifying residential and commercial properties.

The government said its gradual move away from gas dependence was due to the depletion of reserves in the Gippsland Basin.

“We are therefore reducing gas demand through electrification and are considering a number of options to secure new supply, including proposals for import terminals where they meet planning and environmental requirements,” a spokesman said .

“We have approved the one and only application for new gas extraction in Victoria since coming to government and passed new legislation that paves the way for the development of offshore gas storage projects.”

A gas stove is seen high up on a wall. It is white with black trim

The Victorian government is phasing out the installation of gas appliances in new-build homes, but most Victorians still use gas at home. (ABC News: Jess Davis)

From the start of this year, all new homes requiring planning permission and all new government buildings must be fully electric.

However, the Australian government’s upcoming gas strategy emphasizes that gas will play an important role in supporting the country’s economy in the transition to net zero.

The framework emphasizes that gas will be needed, at lower levels, both domestically and internationally, until 2050 and beyond, but emphasizes the importance of finding alternatives to gas to reduce emissions.

Climate change expert says new gas terminal ‘makes sense’

Grattan Institute energy and climate change program director Tony Wood said moving products by sea was not unusual for Australia and was often more cost-effective than moving them on land.

Mr Wood said it was best to establish a terminal in an area where significant infrastructure already existed, rather than creating a new facility in a pristine environment.

“We will need (gas) more for the winter seasons and that’s where the idea of ​​bringing some to Victoria by ship makes sense,” Mr Wood said.

a man in a suit fills the frame

Tony Wood says a gas terminal is important to maintaining a reliable power supply as the state transitions to renewables. (ABC News: Sean Warren)

“The costs are not small, but something has to be done because we don’t want to see ourselves run out of gas before we find a way to get out ourselves.

“Those who say we should get off gas tomorrow are almost certainly naively optimistic, and those who say we should never give up gas because it’s too hard also fail to accept the consequences of climate change.”

Mr Wood said the gas import terminals “were a plan for the worst as we hope for the best” and would act as an insurance policy when wind and solar power are scarce.

“It’s a bit like having a desalination plant in Victoria … that was insurance against terrible water outages,” he said.

New supply is needed as soon as possible, the peak gas body says

Australian Energy Producers chief executive Samantha McCulloch said Victoria was facing a gas shortage from next year because the government had failed to develop new gas sources over the past decade.

a blonde woman sitting at a desk wearing a pink blazer

Samantha McCulloch says the Victorian government has made bad gas decisions for a decade, bringing the state to the brink of an energy supply crisis. (ABC News: Matt Roberts)

“Despite having abundant undeveloped onshore and offshore gas resources, years of policy failures and inaction mean Victoria now faces the prospect of having to import gas,” she said.

“The Victorian Government should prioritize bringing new gas supplies online as soon as possible to address looming shortfalls and ensure Victorian homes and businesses have reliable and affordable energy.”