The Australian government has finalised a series of new offshore exploration permits aimed at bolstering gas supply. 

The announcement by Minister for Resources and Northern Australia, Madeleine King, has sparked both support and criticism from various stakeholders.

The permits have been granted to Esso and Beach Energy to target the Otway and Sorrell Basins, with the discovered gas intended for the domestic east coast market. 

On the west coast, Chevron, INPEX, Melbana, and Woodside Energy have been allocated exploration rights to enhance energy security in Western Australia. 

Additionally, ten permits have been issued for carbon capture and storage (CCS) exploration, which the government says is part of its commitment to CCS as part of its net-zero emissions strategy.

Minister King says gas is needed for the transition to renewable energy. 

“As ageing coal generation comes offline in coming years, gas will continue to be needed to firm renewable energy generation and as a backup during peak energy use periods,” she said. 

However, the decision has not been without controversy. 

The latest ACCC Gas Inquiry Interim Report indicates potential gas supply shortfalls on the east coast by 2027, with ongoing challenges anticipated until the mid-2030s unless new sources are developed. 

Critics argue that while the government is focusing on ensuring energy security, the long-term viability and environmental impact of continued fossil fuel exploration remain contentious issues.

Minister King said gas will “be a diminishing proportion of our energy mix to 2050 as other storage technologies come online”. 

The government’s Future Gas Strategy aims to optimise existing resources while aligning with net-zero targets. 

It says gas demand will decline significantly as the economy shifts towards cleaner energy solutions, but securing supply is essential to meet domestic needs.

The government has stressed that the finalisation of these permits does not equate to immediate gas production. 

Extensive safety and environmental approvals are required from the National Offshore Petroleum Safety and Environmental Management Authority before any exploration can begin. 

Additionally, no new seismic surveying is permitted; companies must reprocess existing seismic data, ensuring minimal environmental disruption.