Victorian onshore gas inquiry delivers mixed results

PERTH (miningweekly.com) - The Australian Petroleum Production & Exploration Association (Appea) has called on the Victorian government to lift a ban on natural gas exploration, after a Parliamentary inquiry into onshore gas failed to deliver a recommendation on the moratorium.

In its report, the Parliamentary committee noted that shale gas and tight gas were likely present in the state, but cast doubts on the availability of coal seam gas (CSG), saying that it was unlikely to be present in large commercial and extractable quantities in Victoria’s brown coal fields.

The report noted that while significant concerns had been raised about the safety of extracting these onshore gas resources, calls to completely avoid the industry unless it was 100% safe, were unrealistic.

Committee chairperson David Davis lashed out at the Victorian government’s commitment to the inquiry, saying that it had failed to facilitate the support necessary to deliver an "authoritative and complete" report.

Additional scientific and administrative support was provided too late, Davis said, adding that the committee’s request to travel to jurisdictions where the onshore gas industry was flourishing, had been denied.

The inquiry ran for a period of six months, which compared to a two-year inquiry by the Western Australian government.

Appea CEO Malcolm Roberts said on Tuesday that the Victorian inquiry had not presented any scientific evidence to support continuing bans on gas exploration and development.

“Indeed the committee admits that it 'was unable to reach definitive conclusions about whether or not an industry could or should proceed at this time’. 

“This finding is in stark contrast to the findings of numerous independent and expert reviews, here and overseas.”

Roberts pointed out that the Australian College of Learned Academies, the Royal Society, the Council of Canadian Academies, the New South Wales Chief Scientist, the Hawke Inquiry in the Northern Territory and the Western Australian Parliamentary inquiry had all reached the same conclusion; that unconventional gas could be safely developed with appropriate regulation.

“The Victorian government now has the opportunity to consider whether it should continue with unjustified moratoriums or take sensible steps to allow the safe development of the state’s resources.

“An obvious start would be to lift the inexplicable ban on conventional gas exploration and development,” Roberts said.

He noted that much was at stake for Victoria, as the state was heavily reliant on natural gas.

“Almost 80% of its households use gas. A large part of Victorian manufacturing needs gas for energy and as an irreplaceable feedstock for its products. Almost 40% of the gas used by Victorian industry is used as a feedstock to create products such as fertilisers, textiles, paints and pharmaceuticals. 

“With many conventional gas reserves depleting, Australia will need to rely on unconventional gas sources to provide energy to homes and industry.”

The Victorian government has stated its intent to develop a gas policy over the next six months.