GAS flaring may be sighted off the south-west coast as a new search for gas starts near Port Campbell.
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Beach Energy has been granted permission to commence a new round of well testing at their site near Port Campbell.
The company has warned there may be sightings or sounds of burning of gas in the area, a process known as flaring, over the coming days.
Following the discovery of gas in Victorian waters through its recent Enterprise exploration program, Beach Energy will carry out tests to determine the size of the gas resource and the potential for future production at the site.
Earth Resources Regulation will continue to closely monitor all activities, said ERR executive director Anthony Hurst.
"We will ensure that Beach Energy fulfills its regulatory obligations to protect people and the environment," he said.
"Flaring of gas is a common industry practice that helps determine what gas may be available, people in the Port Campbell area may see and hear the testing activities.
"If the current testing is successful, Beach Energy will need to seek further regulatory approvals before production can commence."
In November, Beach Energy announced their exploration program had been successful and say this testing helps validate those results.
Demobilisation of drilling equipment has begun following the completion of the latest exploration work, which started on 1 October.
Beach Energy has been searching for offshore gas using onshore-to-offshore drilling, the same method used at the nearby Black Watch well, which is now supplying natural gas to the Otway Gas Plant.
On-ground onshore conventional gas exploration and development will be possible from 1 July 2021 after being given the green light from the state government.
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