Government’s own report points out the risks of drilling for gas on Ninety Mile Beach in Gippsland

Environmental groups say new gas exploration licenses for Gippsland’s Ninety Mile Beach could put national parks and groundwater at risk – and wouldn’t be necessary if Australia kept more gas for the domestic market instead of exporting it.

• The licenses, put out by the Victorian government, were announced in December: one is onshore in Gippsland and another is offshore in the Otway Basin. 

• These licences will allow private companies to search for gas reserves and look at the viability of drilling to extract petroleum.

Plenty of gas, just not for us: Environmental groups like Environment Victoria and Friends of the Earth, as well as industry experts say claims the state is running out of gas can largely be blamed on the industry’s practice of exporting more than it uses, resulting in less gas being available for the Australian public.

What is being proposed? In Gippsland, the area that will be looked at covers 199 square kilometres between Woodside and Seaspray along the coast and near the Ninety Mile Beach Marine National Park.

Water your concerns: Climate Campaign manager at Environment Victoria, Joy Toose, told the Monitor: “The key issue for Gippsland is that it puts the local groundwater at risk and much of the permit area is unsuitable for gas.”

In its submission to the government on the proposal, Environment Victoria cited a 2020 state government report that found even low levels of gas extraction would cause groundwater levels to decline.

• Toose pointed out that since that report was finished Gippsland’s waterways have come under increased pressure from a drying climate. She also pointed out the large quantities of water sought by mine companies to rehabilitate open-cut mines in the Latrobe Valley.

Restricted area: Toose said the area the state government had proposed to search for gas is extremely restricted due to the Jack Smith Lake Wildlife Reserve and Mullungdung State Forest both being in the proposed area.

Why don’t we use what we already have?

In late December, after the Victorian government had made the decision to search for more gas, the federal government announced a new policy that will require gas companies operating on the east coast to hold 15 percent of the petroleum they extract to be used in the domestic market, instead of just exporting it.

🗣️ Energy minister Chris Bowen said this policy will help shore up supply and put downward pressure on energy prices.

• This scheme won’t start until 2027, but it will apply to any new contracts entered into.

The Victorian deal: It’s unclear how much of this 15 percent will be allocated to the Victorian market – but Toose said the government should be looking at using the gas that has already been taken out of the ground before drilling for more.

Lead analyst for Australian gas at the Institute for Energy Economics and Financial Analysis, Josh Runciman, told the West Vic Brolga there was no guarantee that new drilling would go directly to the domestic market.

• 🗣️ “Once it’s in the gas grid, really it then depends on who purchases it. So we do see at times gas flowing from the southern states up to Queensland and some of that gas is probably exported.”