Government to consider changes to gas appliance ban

Sydney Morning Herald

20-06-2025

'Victorian gas is the cheapest in the nation. The longer we can rely on Victorian gas rather than imported gas, the better for Victoria's industrial sector.'
The government has received submissions from industry, environmental advocates and other groups.
Victorian Automotive Chamber of Commerce chief executive Peter Jones told The Age that the building electrification proposal 'threatens the foundation' of the industry.
'With approximately 4800 automotive businesses across the state relying on gas for their daily operations, this policy could force many of our members to either relocate interstate or shut down entirely,' he said.
'We're looking at the real possibility of vehicle parts, trailer manufacturing and other industry moving offshore permanently – taking Victorian jobs with them.'
Victorian Trades Hall Council, Environment Victoria and the Victorian Council of Social Services have all made submissions supporting the plan.
In March, VCOSS chief executive Juanita Pope said electric homes were better for people's health and that renters and low-income earners would need help to make the transition.
'Prioritising support for these households will mean that all Victorians can enjoy the health benefits and bill savings of electrification,' she said at the time.
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Laundry Association of Australia chief executive Luke Simpkins said if the electrification program was implemented as proposed, it would eventually lead to higher costs.
'Everything will get passed through where possible,' he said.
The debate comes as information provided by ExxonMobil to the Australian Energy Market Operator in April, as part of regular communication on the state of its assets, shows its Turrum Phase 3 project has revised its estimated capacity upwards.
The project, which features a series of new Bass Strait wells, was announced in March, and the data shows it could now deliver 229 petajoules of gas over its lifetime starting from 2027, up from 137 petajoules originally expected.
The numbers are preliminary and will require more work to determine precisely how much gas will be delivered from the project.
But the upgrade raises the prospect that forecast shortages of gas in Victoria and New South Wales could be further delayed.
When the project was announced, it factored into AEMO's calculations that pushed looming gas shortfalls back from 2025 to 2028.
Energy and climate ministers have been meeting for months to map out a way to shore up supply in Australia, with discussions including giving AEMO the power to be a long-time buyer of gas through import terminals.
AEMO's executive general manager of system design, Merryn York, said AEMO was waiting for further information on the Turrum project to see if it should update its advice for the national gas system.
'Additional information has been provided to AEMO's Gas Bulletin Board on gas reserves at the Turrum gas field, part of the Gippsland Basin Joint Venture (GBJV) between Esso Australia and Woodside Energy,' she said.
'We're awaiting on further analysis from both parties to determine when the additional reserves could be produced and the impact this may have on other GBJV fields and projects.'
An Esso spokesperson said their anticipated production remained consistent with AEMO's road map.
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'Esso Australia regularly reviews remaining gas reserves and periodically updates the Australian Energy Market Operator of any material changes,' they said.
'While depletion of the Gippsland Basin is inevitable, projects like Turrum Phase 3 will ensure Bass Strait continues to produce gas for the domestic market past 2030.'