The Offshore Petroleum and Greenhouse Gas Storage Amendment Bill 2024 has passed the Victorian Parliament – supporting development of additional gas storage capability to help maintain secure and reliable gas supply.
This legislative change means gas can now be stored offshore in underground reservoirs deep in rock layers, where it formed naturally before being extracted.
This additional gas storage will ensure that supply can be made available when and where it is most needed. This will reduce Victoria’s exposure to swings in gas prices during periods of high demand and will provide secure supply for gas-powered electricity generators to balance the electricity system when required - crucial for maintaining energy security as the state moves toward its renewable energy goals.
One proposed offshore gas storage project – which is approved – could provide approximately 12.5 petajoules of additional gas storage, increasing Victoria’s storage capacity by almost 50%.
The Golden Beach Energy Storage Project developed by GB Energy, will become Victoria’s first offshore gas storage facility. It will be located off the coast of Gippsland and has already undergone a rigorous Environment Effects Statement process that included public consultation and can now progress to the final investment stage.
The Golden Beach Gas Project will complete an initial short period of production before it can be transitioned to a storage facility. The project is expected to deliver 30 petajoules of gas for the domestic market over a year from winter 2027 – this is about a quarter of Victoria’s annual household and small business consumption.
Increasing our gas storage capacity will increase reliability and security during periods of high demand. It will also support our gas-powered electricity generators, with gas currently providing around 2 to 5 % of Victoria’s total electricity generation on average.
This means that Victoria’s energy supply will be secured as it progresses to 95% renewable electricity by 2035, with gas providing the remaining 5% to maintain reliable and secure supplies of electricity.
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