Dec 10, 2025 (MarketLine via COMTEX) --
Tender applications have been called for two areas aEUR" one in the Otway Basin and the other in the Gippsland Basin.
The Australian state of Victoria has launched its first petroleum exploration tenders since 2018 in response to looming gas supply risks caused by declining production in existing fields.A
The tender applications have been invited for two areas: Area VIC/25-1 aEUR" offshore the Otway Basin (Victorian waters) and Area VIC/25-2 aEUR" onshore the Gippsland Basin.A
Tender applications can be submitted until 11 February 2026.A
According to the petroleum industry, these areas have aEURoethe most interest for explorationaEUR.A
Bloomberg reported that the new exploration projects are intended to supply the domestic market and are not aimed at supporting exports.A
This move is part of a broader strategy to address increasing electricity demand in New South Wales (NSW), Victoria and South Australia, according to the report.A
The Australian Energy Market Operator forecast earlier this year that demand for gas on the east coast is expected to outpace supply from 2028.A
This projection has led to calls to compel liquefied natural gas exporters to redirect non-contracted supplies to the domestic market to address the shortfall.A
Environmental organisations opposed the governmentaEUR(TM)s decision onAnew gas exploration tenders due to the potential impact on the climate.A
Environment Victoria stated that the projects can have aEURoegrave environmental impacts from seismic blasting, marine ecosystem damage and groundwater drawdownaEUR.A
Environment Victoria senior climate and energy advisor Kat Lucas-Healey said: aEURoeThe government has completely ignored community concerns about seismic blasting and risks to GippslandaEUR(TM)s groundwater in opening up these tenders. These are serious, lasting impacts and for what? For the last dregs of Victorian gas.A
aEURoeGas use in Victorian homes and businesses is plummeting as people switch to much cheaper and more efficient electric alternatives.A
aEURoeOpening up new exploration of a rapidly diminishing resource only cultivates uncertainty, which costs households and businesses.aEURA
In June, the Australian Financial Review reported that indigenous landowners mounted legal challenges against SantosaEUR(TM) A$3.6bn ($2.39bn) Narrabri gas project in NSW.A
In September, the Australian Government announced a 2035 target to reduce emissions by 62aEUR"70% below 2005 levels.?A
Australian Energy Producers has welcomed the Victorian GovernmentaEUR(TM)s decision to invite tender applications for petroleum exploration permits in the Otway and Gippsland basins.A
Australian Energy Producers Victoria director Peter Kos said: aEURoeTodayaEUR(TM)s announcement is an essential first step in unlocking new domestic natural gas resources and demonstrates that the government is taking steps to address future energy challenges.aEURA
Kos further added: aEURoeNatural gas plays a critical role in VictoriaaEUR(TM)s energy system, with more than two million households connected to gas and around one-third of the stateaEUR(TM)s manufacturing energy needs met by gas.aEURA
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COMTEX_470988274/2227/2025-12-10T18:09:03
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