Australia announces new offshore gas exploration permits

By Aya Anwar On Jul 23, 2024

Australia announced on Tuesday new offshore gas exploration permits for its east and west coasts to address potential long-term supply gaps amid a transition from coal-fired power. Gas is seen as crucial in supporting renewable energy as coal plants are phased out.

“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,” Australian Resources Minister Madeleine King said in a statement.

The permits will be issued for carbon capture and storage (CCS) projects, which Greenpeace Australia criticised as a setback for emission reduction efforts. The move follows a warning from Australia’s competition regulator about potential gas shortages on the east coast from 2027.

Exploration permits will be finalised for Exxon Mobil and Beach Energy on the east coast, and Chevron, Inpex, Melbana, and Woodside on the west. Any gas found will be allocated for domestic use. However, new production is not guaranteed as it requires further safety and environmental approvals. Additionally, no new seismic surveys will be allowed; companies must use existing data.

Attribution: Reuters