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Victoria Invites First Gas Exploration Bids Since 2018 for Otway and Gippsland

The government cites AEMO shortfall warnings to justify domestic‑focused permits.

Overview

  • The tender covers Area VIC/25-1 offshore in the Otway Basin and Area VIC/25-2 onshore in the Gippsland Basin, with applications due by February 11, 2026.
  • For the offshore block, the state says bids that rely on existing seismic data and avoid new seismic testing will be preferred.
  • Officials say the exploration is intended to supply the domestic market rather than support exports, reflecting efforts to bolster local availability.
  • Producers welcomed the decision and warned of shortages as early as 2027 as Bass Strait output declines, while environmental groups and local communities oppose the plan over seismic, groundwater and marine risks near protected areas.
  • Energy Minister Lily D'Ambrosio argues new gas is needed during the transition as Victoria phases out new gas connections for homes from 2027 and still has nearly 2 million gas‑connected customers.