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Gas shortages loom as Victoria faces a potential energy crisis


Victoria is facing a looming energy crisis as gas supply dwindles faster than anticipated, according to a recent report by the Australian Energy Market Operator (AEMO).

The report warns of a critical shortfall, with the state at risk of outages within the next four years if urgent action is not taken. By 2028, Victoria is projected to become a net importer of gas unless significant investment is made in new infrastructure and supply projects.

AEMO CEO Daniel Westerman stressed the need for immediate action, highlighting the necessity of pipeline upgrades, new domestic supply initiatives, and LNG import terminals to address the impending shortages. The report indicates a staggering 48% reduction in gas supply from 297 petajoules (PJ) in 2024 to 154 PJ in 2028, while demand remains high.

The closure of coal-fired power stations and declining production in the Gippsland Basin exacerbate the situation, raising concerns about potential outages and supply constraints. Industries such as brickworks and bakeries may face restrictions on gas usage, impacting households subsequently.

Premier Jacinta Allan claimed the government’s commitment to securing “cleaner energy alternatives.” Despite advocating for electrification, she acknowledged the continued reliance on gas.

However, opposition energy spokesman David Davis criticised the government’s policies, attributing the crisis to what he described as “mad ideology.” He called for a reversal of the gas ban and urgent measures to address rising prices and declining reliability.

The AEMO report underscores the urgency of the situation, urging immediate action to avert a potential energy disaster in Victoria.

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