Victoria Approves Major New Gas Project to Boost Local Supply

Victorian industries are set to gain access to more locally produced and affordable gas following approval of a major new offshore development.

The Allan Labor Government and Albanese Labor Government have approved the production licence for Amplitude Energy's Annie Gas Field Project in the Otway Basin, paving the way for new gas supplies to enter the Victorian market from 2028.

The project is expected to deliver gas volumes equivalent to more than one-third of Victoria's annual usage, helping secure supply for industries that still rely heavily on gas and cannot easily transition to electric alternatives.

Construction is scheduled to begin next year, with the additional supply arriving at a critical time for the east coast energy market.

The Australian Energy Market Operator (AEMO) has recently delayed its forecast peak-day gas shortfall from 2028 to 2029, partly due to lower demand driven by government electrification initiatives aimed at helping homes and businesses move away from gas appliances and reduce energy costs.

While Victoria continues transitioning toward cleaner energy sources, declining supplies from the Bass Strait and rising gas prices have increased pressure on the market.

The Annie Gas Field Project will utilise existing infrastructure connected to the Casino-Henry-Netherby gas field in the Otway Basin, helping streamline development and reduce costs.

The Victorian Government has also approved Labor's Offshore Petroleum and Greenhouse Gas Storage Amendment Regulations 2026, providing greater regulatory certainty for the proposed $1 billion Golden Beach gas production and storage project in Gippsland.

The Golden Beach project is expected to add around 18.75 petajoules of gas storage capacity, boosting Victoria's storage capability by approximately 70 per cent and reducing the risk of winter supply shortages from 2029 onward.

The government says its broader energy strategy focuses on helping households switch to electric technologies while ensuring adequate gas supply remains available for businesses and industries that continue to depend on it.

Victorian Energy and Resources Minister Lily D'Ambrosio said the approvals would help support both energy affordability and reliability during the state's transition.

"Only Labor has a plan to manage the energy transition responsibly - unlocking local supply, lowering bills for families and keeping Victoria's economy strong," she said.

"This approval unlocks more affordable, locally produced gas for Victorians, helping to secure supply for the industries that still rely on gas."