The Victorian Government is introducing new legislation to allow offshore gas storage projects in Victorian waters. This initiative aims to enhance storage capacity and reduce gas demand.
Victorian Minister for Energy and Resources, Lily D’Ambrosio, and Minister for Planning, Sonya Kilkenny, have presented the legislation to the Victorian Parliament. The legislation, known as the Building Legislation Amendment and Other Matters Bill 2024, will enable the development of offshore gas storage and facilitate consultations on Victoria’s energy transition.
“This new legislation will support the development of offshore gas storage projects to ensure a secure gas supply while reducing gas demand by helping Victorian households switch to electric appliances,” said Ms. D’Ambrosio.
The bill also allows for formal consultation on transitioning Victorian homes to electric appliances as their current gas systems reach the end of their lifecycle. This process aims to involve industry and community input.
“We are committed to listening to Victorians about our transition to a more sustainable energy system while helping households save money by switching to electric appliances,” added Ms. Kilkenny.
Current gas cooktops, appliances in existing commercial and industrial facilities, and LPG use will not be affected. New homes requiring planning permits must be built all-electric, and the consultation will explore expanding this requirement to all new homes and many commercial buildings.
Victoria, the largest residential gas user in Australia with two million connected households and businesses, expects that converting to all-electric systems could save families an average of $1,700 per year, or $2,700 if combined with rooftop solar.
The State Government plans to release draft regulations for public consultation in December 2024, followed by a period for formal submissions via Engage Victoria.
The Offshore Petroleum and Greenhouse Gas Storage Amendment Bill 2024 will permit the storage of gas in offshore reservoirs, boosting supply security and supporting gas-powered electricity generation, which currently contributes about 2 to 5 percent of Victoria’s total electricity production.
This legislation provides investment certainty for critical projects and strengthens regulatory oversight, aiming to increase reliability and security during periods of high demand.