New offshore gas exploration permits to support the domestic east coast market and west coast producers have been announced by the federal government.
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Supply challenges could persist for the next decade unless new sources of gas supply were developed, Resources Minister Madeleine King said on Tuesday.
Permits will be finalised for Esso and Beach Energy in the Otway and Sorrell Basins as well as Chevron, INPEX, Melbana and Woodside Energy on Australia's west coast.
Despite being one of the world's biggest LNG exporters, regulators have warned the domestic east coast market may experience gas supply shortfalls as early as 2027 and a deficit for Western Australian users from 2024 to 2029.
"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," Ms King said.
"Gas is critical for the transition. But it will be a diminishing proportion of our energy mix to 2050 as other storage technologies come online," she said.
Ten permits will also be finalised for carbon capture and storage exploration, as producers look to repurpose depleted wells to store greenhouse gases.
The finalisation of offshore exploration permits does not automatically allow new offshore gas production to occur.
Environmental approvals are required through the National Offshore Petroleum Safety and Environmental Management Authority before new offshore gas production can occur.
More community consultation will also be required before any offshore exploration work can commence, Ms King said.
She said there would be no new seismic surveying permitted to occur as part of the approved work program for each permit.
Companies will instead be required to license or reprocess existing seismic data.
Australian Associated Press
