Victoria approves offshore gasfield near Twelve Apostles amid energy transition debates
Consensus Summary
The Victorian and federal governments approved Amplitude Energy’s Annie gasfield project in the Otway Basin on May 7, 2026, with production set to begin in 2028. Located 9km off Peterborough and 12km west of the Twelve Apostles, the project aims to supply up to 65 petajoules of gas—equivalent to ~4% of Australia’s east coast demand over five years—to support industries unable to transition to electrification. While the Australian Energy Market Operator (AEMO) delayed its gas shortfall forecast to 2029, environmental groups warn the project undermines Victoria’s renewable energy targets and risks coastal ecosystems. The Victorian Coalition opposes new transmission lines, proposing urban solar parks instead, though experts argue rooftop solar alone cannot replace large-scale renewable infrastructure. Both sources agree the decision sparks debate over balancing gas supply with climate goals during Victoria’s energy transition.
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Key details reported by multiple sources:
- Amplitude Energy’s Annie gasfield project in Victoria’s Otway Basin was approved by federal and Victorian governments on 2026-05-07, with production expected to start by 2028.
- The gasfield is located about 9km off the shores of Peterborough and Port Campbell, approximately 12km west of the Twelve Apostles.
- The project is expected to provide up to 65 petajoules of gas (or ~4% of Australia’s east coast demand over five years), supplying industries unable to electrify.
- The Australian Energy Market Operator (AEMO) pushed back its peak-day gas shortfall forecast to 2029, citing increased supply and reduced consumption.
- Victoria’s Energy and Resources Minister Lily D’Ambrosio stated the project would ensure gas supply for industries that ‘can’t electrify’ while transitioning to renewables.
- Environmental groups (Greenpeace Australia Pacific, Environment Victoria) warned the project risks ‘pristine ocean environments’ and slows climate progress.
Points of Difference
Details reported by only one source:
- The project is the second major gas approval by Labor this term, following a 2022 election pledge to achieve 95% renewable energy by 2035.
- Victorian Coalition proposed pausing all major transmission line projects (including VNI West) and replacing them with ‘urban solar parks’ on commercial rooftops.
- Grattan Institute’s Alison Reeve noted rooftop solar is often impractical for warehouses/factories due to structural weight limits.
- Victorian Greens leader Ellen Sandell accused major parties of prioritizing ‘fossil fuel corporation mates’ over environmental/climate goals.
- Environment Victoria’s Joy Toose cited existing/approved fossil fuel projects have already exhausted the carbon budget for 2°C warming.
- The Twelve Apostles attracts over 2.8 million visitors annually, raising concerns about environmental impact near a tourist hotspot.
- Amplitude Energy claims the project will use existing infrastructure from the Casino-Henry-Netherby gas field in the Otway Basin.
- Federal Resources Minister Madeleine King stated the gas would be exclusively for domestic use to ease shortfall risks.
- The federal government is seeking nominations for new offshore exploration areas in Tasmania, Gippsland, and Bass basins.
- Victorian Chamber of Commerce and Industry welcomed the approval, citing business concerns over energy affordability and supply.
- Amplitude Energy spokesperson stated the project’s subsurface infrastructure would have minimal visual impact, with only temporary drilling visible.
Contradictions
Conflicting information between sources:
- The Guardian states the gasfield will provide ‘more than a third of Victoria’s annual gas use,’ while ABC says it will supply ‘about 4% of Australia’s east coast demand over five years.’
- The Guardian claims the project ‘risks our pristine ocean environment,’ but Amplitude Energy (cited in ABC) asserts the infrastructure is subsurface and will have ‘little impact on visual amenity.’
- The Guardian reports the opposition’s pause on transmission lines would ‘strangle Victoria’s renewable energy industry,’ while ABC does not mention this specific claim from the Greens.
Source Articles
New gasfield approved near Twelve Apostles puts climate and ‘pristine’ ocean in jeopardy, environmentalists warn
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New gas field in waters near Twelve Apostles given green light
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