Media Contact
Carl Kitchen 0401 691 342
Aug 30 2016

Victoria's Gas Decision Disappoints


Victoria’s decision to block onshore unconventional gas developments, and continue the moratorium on conventional gas development, is short-sighted and ignores the important role gas will play in supporting renewables integration and reducing carbon emissions as the energy sector transforms, the energy industry said today.

The Australian Energy Council’s Chief Executive, Matthew Warren, said that developing Victoria’s gas reserves is critical to maintaining downward pressure on both energy prices and carbon emissions.

“Gas has half the carbon emissions of coal, and delivers flexible, reliable energy at times when renewable sources may be unavailable.

“The Victorian Government’s plan to install over 5,000MW of wind generation will mean that Victoria’s electricity system will be increasingly reliant on gas as a flexible back-up fuel. Scarce gas supplies will make this more challenging, as we saw in South Australia last month, where spot gas prices peaked at almost $30/GJ, or up to five times long-run prices.

“At the recent COAG Energy Council meeting all states – except Victoria - confirmed the importance of gas development and agreed to work collaboratively to develop Australia’s valuable and abundant onshore gas reserves,” said Mr Warren.

“In blocking the exploration and development of all onshore unconventional gas in Victoria, the Victorian Government is succumbing to populist sentiment on fracking, a gas extraction method which expert reports have consistently found to be safe when conducted appropriately.

“This is a very disappointing response from the Victorian Government, and can only mean bad news for its energy prices and gas supply into the future.”


About the Australian Energy Council

The Council represents 22 major electricity and downstream natural gas businesses operating in competitive wholesale and retail energy markets. These businesses collectively generate the overwhelming majority of electricity in Australia and sell gas and electricity to over 10 million homes and businesses.


Related News


AEMO Plan Identifies Dispatchable Plant Deficit

The latest assessment of our energy system points to the urgency of getting sufficient firming capacity in place to back up the transformational injection of renewables into our grid, according to the peak body for energy retailers and generators, the Australian Energy Council.

Dec 15 2023

NSW Electricity Check Up Highlights Challenges of Transition

The peak body for electricity generators and retailers, the Australian Energy Council, said the report to the NSW Government illustrates the extreme challenges being thrown up by the energy market transition.

Sep 05 2023

Background Briefing: Retailers and Gas Supply for C&I customers

Key points Gas prices have been increasing over the last 12 months, primarily due to international factors.

Jan 25 2023
Do you have a question or comment for AEC?

Send an email with your question or comment, and include your name and a short message and we'll get back to you shortly.

Call Us
+61 (3) 9205 3100