A plan to import natural gas into Victoria to protect the state from energy shortages is opposed by locals and environmental groups.

Victoria faces a looming natural gas shortage due to depletion of supplies traditionally sourced from the Bass Strait.

The new, floating gas terminal off the coast of Geelong is designed to be a cost-effective solution for the 90 per cent of Victorian homes that rely on gas-fired stoves and heating.

But critics of the project say the terminal, which will pipe gas from other parts of Australia or the world, will be located too close to homes and businesses.

They also argue that the environmental impacts of the project were not properly assessed.

Energy company Viva Energy has proposed building an LNG gas import terminal adjacent to the Geelong Refinery in Corio Bay, capable of supplying 80 per cent of Victoria’s annual gas consumption.

Once Victoria reduces its reliance on gas, Viva Energy plans to relocate the floating gas terminal and reuse the remaining infrastructure.

Viva Energy’s chief strategy officer Lachlan Pfeiffer said the terminal was the only complete gas solution for Victoria that could be delivered in time for shortages predicted in winter 2028.

“Our project is about efficiently securing Victoria’s energy needs at the lowest cost and delivering gas to where it is needed most – close to the greater Melbourne and Geelong market,” he said.

Viva Energy submitted an environmental impact statement (EES) to the Minister for Planning in October 2022 but has been ordered to prepare a supplementary EES to further investigate the project’s impacts on the marine environment, noise, air quality and underwater Aboriginal cultural heritage.

In response to the Additional EES, approximately 400 submissions were made to an investigation and advisory committee (IAC); Some stakeholders will present their views at a public hearing next month.

Concern about pollution and noise

On Saturday Environment Victoria, Geelong Sustainability and Australian Conservation Trust Geelong held a protest at Norlane in Geelong’s north.

About 100 people gathered to voice their concerns, including North Shore Residents Group member Tenille Moisel.

He said local residents were concerned about the terminal’s proximity to nearby homes.

“We know from other events around the world that there hasn’t been much warning, that the potential area it can destroy if an accident occurs is significant,” Ms Moisel said.

“And the fact that we are so close to it – 700 feet away – actually makes us really worried.”

Environment Victoria has raised concerns about the project with the state’s planning department, claiming the volume of gas Viva Energy plans to import could be responsible for 30 to 37 per cent of Victoria’s emissions in 2035.

“These estimates are conservative because they do not take into account fugitive emissions or emissions from the transportation or production of LNG,” the application states.

“This also means that Viva Energy will have an interest in slowing the switch to natural gas in order to keep its terminal operational for longer to recoup its investment costs.”

Lawyers acting on behalf of Geelong Grammar School have made a submission about noise concerns from the gas terminal and will be heard by an advisory committee to the planning minister next month.

The school also questions the accuracy of assessments of the ecological impacts of dredging and chlorinated water discharge, as well as their impact on cultural heritage.

Environment Victoria’s river and nature campaign manager Greg Foyster said concerns remained about LNG tankers passing through people’s homes and through wetlands, as well as the impact of dredging on seagrass meadows in Corio Bay.

Mr Foyster said: “We hope that Viva’s proposal will be subjected to serious scrutiny. We think it should be rejected and we do not think that is the appropriate venue.”

Mr Foyster said he would prefer the state government continue its move away from gas.

“I think the best solution is still to stay on track to help households get off gas and help cover the upfront cost of switching from old, ducted gas systems to efficient electric systems,” he said.

Viva Energy argues the project will not impact wetlands and is located near the Victorian Transmission System, meaning minimal infrastructure will be needed to connect to existing pipeline corridors.

Victoria’s current gas situation

In June this year, the Australian Energy Market Operator (AEMO) warned of the risk of emergency gas supplies for the east coast due to a surge in demand due to cold weather, a lack of renewable energy and the disruption of southern Australia’s largest gas supply. Longford gas works.

Domestic gas reserves in Bass Strait, which feeds the Longford gas plant, are expected to decline, and AEMO predicts that gas supplies on the east coast will not be able to meet demand at peak times within a few years.

According to the east coast gas outlook released this week, Victoria will require 32 per cent of its gas supply from Liquefied Natural Gas (LNG) imports from winter 2028; This rate will increase to 42 percent in 2029 and 55 percent in 2030. energy consulting company EnergyQuest.

Government paves the way to move away from gas dependency

The Victorian government’s gas substitution roadmap supports the transition of homes and businesses away from gas through the electrification of residential and commercial properties.

The government said its gradual move away from gas dependence was due to the depletion of gas resources in the Gippsland Basin.

“We are therefore reducing demand for gas through electrification and are considering a range of options to secure new supply, including import terminal proposals that meet planning and environmental requirements,” a spokesman said.

“Since coming to government we have approved the only application for new gas extraction in Victoria and passed new legislation paving the way for the development of offshore gas storage projects.”

From the beginning of this year, all new homes requiring planning permission and all new government buildings must be fully electric.

But the Australian government’s future gas strategy highlights that gas will play a key role in supporting the country’s economy in the transition to net zero.

The framework highlights that gas will be needed at lower levels both domestically and internationally by 2050 and beyond, but emphasizes the importance of finding alternatives to gas to reduce emissions.

Climate change expert says new gas terminal ‘makes sense’

Tony Wood, energy and climate change program director at the Grattan Institute, said transporting products by sea was not unusual for Australia and was often more cost-effective than transporting them by land.

Mr Wood said it was best to build a terminal in an area where significant infrastructure already existed rather than creating a new facility in a pristine environment.

“We’re going to need gas more in the winter and that’s where the idea of ​​bringing something by ship to Victoria makes sense,” Mr Wood said.

“The costs are not small, but something needs to be done because we don’t want to see ourselves run out of gas before we find a way to get off the gas ourselves.

“Those who say we should go off the gas tomorrow are almost certainly naive optimists, and those who say we should never go off the gas because it is too difficult are failing to recognize the consequences of climate change.”

Mr Wood said gas import terminals “are a plan for the worst as we hope for the best” and will act as an insurance policy when wind and solar energy are scarce.

“It’s a bit like having a desalination plant in Victoria… it was insurance against terrible water shortage situations,” he said.

New supplies needed as soon as possible, gas peak body says

Australian Energy Producers CEO Samantha McCulloch said Victoria was facing a gas shortage from next year because the government had failed to develop new gas sources over the past decade.

“Despite having abundant undeveloped gas resources onshore and offshore, years of policy failures and inaction mean Victoria now faces the prospect of having to import gas,” he said.

“The Victorian government must prioritize bringing new gas supplies online as soon as possible to address looming shortages and ensure Victorian homes and businesses have reliable and affordable energy.”