WATERS off the south-west coast of Victoria will be the focus of a new multi-million dollar search for gas.
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On Monday the state government granted two new permits to Beach Energy and Bridgeport Energy to explore for gas in state waters near Portland and Port Campbell.
Resources Minister Jaclyn Symes said up to $85 million could be generated if initial exploration is successful.
The permitting of further offshore gas exploration has raised concerns from environmental bodies.
Community-driven environment group Friends of the Earth said the long-awaited announcement "further locks in Victoria's reliance on polluting fossil fuels".
"The Victorian government understands that time is running out when it comes to climate change and has committed to net zero emissions for the state by 2050," group coordinator Cam Walker said.
"This means that, year on year, we need to reduce greenhouse gas emissions.
"Opening up new sources of fossil fuels, like offshore gas, is deeply at odds with both climate science and the government's own commitments."
However Minister Symes said gas will play an important role in supporting Victoria's transition to a cleaner energy future, in line with the zero net emissions committment.
"We're encouraging safe and sensible gas exploration that brings jobs and investment to our regions as well as additional supply for homes and businesses to keep the lights on and their houses warm," Minster Symes said.
"This industry interest backs the extensive geoscience of the Victorian Gas Program, showing there's a good chance of boosting local gas supply while maintaining protection of our precious natural environment."
Mr Walker said seismic testing associated with the offshore gas exploration was a concern for local communities due to the impact on marine life and fisheries.
"Exploration involves geological studies to search for offshore gas deposits, including a range of 'desktop and field activities' which are likely to include seismic testing," he said.
"There can be no doubt that seismic testing will impact on marine life, including whales, and both commercial and recreational fishing."
Commercial fishers in East Gippsland reported catch reductions of up 80 per cent in the wake of seismic testing.
The state government, in a press release, said exploration was subject to strict environmental controls.
They said these offshore gas resources can be accessed from onshore without any disturbance of the marine environment.
Beach Energy and Bridgeport Energy are also required to work closely with the commercial fishing industry, local communities and government bodies along the south-west coast as they conduct their exploration programs.
The new permits are on the doorstep of an existing offshore gas industry including Beach Energy's existing Halladale-Speculant facility and their Enterprise exploration project. The area also hosts Lochard Energy's Iona Gas Plant.
The new permits come after the state government's decision to scrap the moratorium on onshore conventional gas drilling, with the Otway Basin identified as having 'potentially significant' onshore conventional gas resources.
Analysis by the The Australia Institute found the state government underestimated the greenhouse gas emissions associated with its decision to remove the moratorium.
Mr Walker said Friends of the Earth intends to write to the minister.
READ MORE:
- Onshore conventional gas drilling in south-west gets green light
- Increased gas supply vital for region, Corangamite mayor says
- Concerns aired over seismic blasting in the Otway Basin
- Environmentalists warn against gas boost
- Government touts new emissions plan, but gas fight takes over
- Push for gas reignites energy debate
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