Australia has unveiled plans to issue new offshore gas exploration permits for its east and west coast markets, aimed at securing long-term gas supply as the country accelerates its shift away from coal-fired power stations.
“As aging 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,” Resources Minister Madeleine King said in a statement.
To achieve this, the government has allocated a total of 10 permits for the exploration of offshore gas reserves, with a particular focus on carbon capture and storage (CCS) technologies.
The government’s move comes after Australia’s competition regulator earlier this month warned the east coast could face gas shortages from 2027, a year earlier than initially forecast.
Australia produces more gas than it needs to meet its domestic demands, but most supply is contracted for export.
The government has identified several companies that will receive these new exploration permits, including Exxon Mobil’s Esso and Beach Energy in the east, and Chevron, Inpex Corp of Japan, Melbana, and Woodside in the west.
Minister King emphasized that any gas discovered through these permits will be prioritized for the domestic market.
King said the permits do not automatically allow new production to occur, and that safety and environment approvals must be given by the industry regulator.
No new seismic surveying will be permitted and companies will instead be required to use existing data, King said.