Beach Energy has been granted two production licenses over the Artisan and La Bella gas fields offshore of Victoria.
Federal Minister for Resources Madeleine King approved the licenses for the Otway Basin projects on Friday, with the aim of bringing more gas to the domestic east coast market.
These production licences will produce gas for domestic use only – directly assisting Victoria and NSW to put downward pressure on prices.
Gas will be fed to Beach Energy’s Otway Gas Plant near Port Campbell in Victoria for processing.
“As Australia makes the transition to renewable energy, we need to ensure stable gas supply to the market,” the Minister’s office said.
“We need to keep downward pressure on prices, shore up energy security and keep the lights on as we move to net zero.
“As the Future Gas Strategy makes clear, while gas will be needed in smaller quantities over time, ensuring adequate supply now is crucial to lowering prices and ensuring gas can play its key role in supporting the transition to net zero.”
Subscribe to Energy Today for the latest project and industry news.