Wednesday, 29 May 2024

Onshore conventional gas

James NEWBURY (Brighton) (14:11): My question is to the Minister for Energy and Resources. Last week the minister for energy said there is no gas available to extract onshore. However, a 2020 report by the Geological Survey of Victoria, a government agency, found there is commercially feasible onshore conventional gas. Why has the minister denied advice from the government’s own agency?

Lily D’AMBROSIO (Mill Park – Minister for Climate Action, Minister for Energy and Resources, Minister for the State Electricity Commission) (14:12): I will make it absolutely clear. I have been absolutely clear, and all of my comments on the availability of gas have been informed by expert advice, not like those on the opposite side here, who just want to frack and want to introduce nuclear power into Victoria.

Members interjecting.

Lily D’AMBROSIO: No, that is right – exactly what you want to do. I have been very clear. The lead scientist made very clear in 2020–21 the availability of conventional onshore gas in Victoria. Can I also point to another expert, and that is the Australian Energy Market Operator. I refer everyone – and I am happy to table it, Speaker, but I will send them a copy if they like – to the latest AEMO report, the Victorian planning report of March this year. It tells us about what the anticipated Victorian production of gas is that is due in 2024 – anticipated zero; 2025, zero; 2026, six.

Peter Walsh: On a point of order, Speaker, if the minister is reading from a document, can I ask her to table it, please.

Members interjecting.

The SPEAKER: Order! The Speaker is on her feet. The minister has said she will table the document.

John Pesutto: On a point of order, Speaker, on the tabling of the document, it was visible. Can the minister table the document she actually said she would table, which contains written notes on it. There are handwritten notes on it.

Members interjecting.

The SPEAKER: Order! The house will come to order. The member for Laverton can leave the chamber for half an hour.

Member for Laverton withdrew from chamber.

The SPEAKER: The minister will table the document she referred to.

Lily D’AMBROSIO: I indeed was the first to offer this document, and I am very happy to table my notes on this, because maybe the Leader of the Opposition will actually learn something about the gas sector in Victoria. In 2026 the market operator has indicated 6 gigajoules of new supply will potentially come forward; in 2027, 13 gigajoules; and in 2028, 14. Do you know what Victoria’s total consumption is –

James Newbury: On a point of order, Speaker, on relevance, the question was not about the minister’s refusal to approve any licences.

The SPEAKER: The minister was being relevant to the question that was asked.

Lily D’AMBROSIO: Those opposite do not want to admit this, but the fact is no organisation has come forward since the moratorium that they imposed in 2012, extended again towards the end of 2012 and extended again in 2014 and which remained in place until all of the processes and investigations were concluded by our lead scientist. The facts are these: no-one has come forward seeking an exploration permit from this government. Not one has come forward. If they come forward, I will be very happy to consider any exploration application according to the legislation that is available.

But the reality is this: they want to deal with the ideology of this debate. That is not what we are interested in. Our interest is dealing with the geological fact. The market operator, the ACCC and those who know about this, including the lead scientist, have demonstrated that there are insufficient supplies of new gas reserves that are able to come into Victoria to meet our future needs. I am prepared to take the advice of experts rather than those opposite – the experts who know what their job is, rather than the Leader of the Opposition, who is actually trying to hang on to his own job.

The SPEAKER: Just for clarification, the minister will table the document after the supplementary question and the answer.

James NEWBURY (Brighton) (14:17): The minister has advised the house that Victoria has the best insulated system in terms of gas prices. Her department has pointed out that Victoria faces daily, monthly and yearly gas shortages from 2026. Why is the minister again disregarding advice from her own officials?

Lily D’AMBROSIO (Mill Park – Minister for Climate Action, Minister for Energy and Resources, Minister for the State Electricity Commission) (14:18): I thank the member for the supplementary question, but it seems to be somewhat confused. The market operator has been very clear about the things that need to happen for the east coast, not just Victoria but the east coast, including New South Wales, which happens to have relied on Victoria’s gas exports for decades, as have South Australia and parts of Tasmania. This is the reality of what we are facing. The reality is this: we need to find new sources of gas to meet the declining availability of current resources into Victoria. That is geology. You do not have to listen to me, Lily D’Ambrosio, but you listen to the experts, because if you do not listen to the experts and adjust and actually do something about it to meet those shortfalls, then the people who are going to pay are Victorians. But the reality is this: Victoria remains the cheapest place to actually source electricity and gas.