Otway Basin gas project approved

The State and Federal governments have approved the production licence for Amplitude Energy’s Annie Gas Field Project, which is expected to contribute a significant volume of locally produced gas to the Victorian market later this decade.

Construction is expected to begin next year, with gas supply forecast to commence in 2028.

The approval comes as Victoria faces increasing pressure on future gas supply, with the Australian Energy Market Operator forecasting peak day shortfalls in the latter part of the decade as production from Bass Strait declines.

The Annie project is expected to use existing infrastructure from the Casino-Henry-Netherby gas field in the Otway Basin, supporting domestic supply at a time when Victoria is at growing risk of relying on imported gas.

The approval of the Otway Basin project coincides with regulatory changes to support gas storage capacity, following approval of the Offshore Petroleum and Greenhouse Gas Storage Amendment Regulations 2026.

These changes provide regulatory certainty for Golden Beach’s proposed gas production and storage project in Gippsland, which is expected to increase Victoria’s gas storage capacity and help manage winter peak demand in the years ahead.

Minister for Energy and Resources Lily D’Ambrosio said: “This approval unlocks more affordable, locally produced gas for Victorians helping to secure supply for the industries that still rely on gas.”

The Victorian Chamber has consistently called for a clear, commercially realistic and technology-neutral energy roadmap that prioritises affordability, reliability and security alongside emissions reduction.

The Chamber has warned that without reliable and affordable energy, investment confidence, industrial competitiveness and jobs would be at risk.

In welcoming the new development, Victorian Chamber of Commerce and Industry Acting Chief Executive Amelia Bitsis said: “This decision reflects the need for practical, balanced energy policy that supports both emissions reduction and economic stability.

“Victoria’s energy transition must continue but it must also work.

“This is a positive and sensible step toward ensuring Victoria has the reliable and affordable energy supply businesses and households need during the transition to net zero.

“We have consistently said gas will remain an essential part of Victoria’s energy mix for some time yet, particularly for manufacturing, industrial operations and thousands of small businesses that rely on it every day.

“Victoria is already facing significant pressure around energy affordability and future supply.

Unlocking additional local supply helps strengthen energy security, our sovereign capability and supports investment confidence and reduces the risk of further price shocks such as the current fuel crisis.

“The transition must be orderly, practical and commercially realistic. That means continuing to invest in renewables and new technologies, while also recognising the important role gas continues to play in keeping Victoria’s economy strong.”