t’s hard to imagine a place like Victoria—rich in natural resources—running out of gas. But that’s exactly what’s happening. While the state produces more gas than it uses, it’s still facing a looming shortfall. How does that work?
A Surprising Situation
Victoria has long been one of the biggest gas users in Australia, accounting for more than half of the country’s residential gas consumption. But here’s the catch: its gas production has been more than enough to meet that demand. In fact, for decades, the state has been producing plenty of gas to cover its own needs—and even exporting some to other states.
However, recent reports indicate that by 2029, this comfortable situation could change. Why? Because the state’s main gas source, the Bass Strait, is running dry. The supply from this area is expected to decline by nearly 40% over the next few years, creating a gap in the state’s energy security, explains ABC.
The Push for New Gas Reserves
So, what’s being done about this? Well, gas extraction companies are scrambling to find new reserves, and the state government has given the green light for exploration in the Otway Basin, located off the south-west coast. ConocoPhillips recently announced the discovery of gas deposits in this area—though it’s still too early to tell if they’ll be commercially viable.
And while the discovery is promising, experts are quick to note that we’re not out of the woods just yet. More work needs to be done, and it could take years to see if these new reserves can fill the gap left by the declining Bass Strait fields.
Why the Shortfall Matters
But even if new gas is found, there’s still a problem. Despite producing more gas than it needs, Victoria is part of a national and international market. The gas produced here isn’t necessarily kept in the state. It’s part of a national pool, some of which is exported overseas to meet the growing demand from countries that pay a lot more for it than local consumers.
As a result, while gas prices have been rising in Victoria for years, the situation isn’t likely to improve without a policy shift to reserve more gas for domestic use. Without it, the cost of living could rise even higher for Victorians who are already struggling with skyrocketing utility bills.
Looking Ahead
The state’s gas future is murky, and it’s clear that the government will need to take some serious steps to ensure that Victoria’s energy needs are met. Whether it’s investing in new reserves or exploring alternative energy solutions, the time to act is now. But for now, the question remains: will Victoria run out of gas, or will the state find a way to keep the lights on? Only time will tell.
