Melbourne - The Victorian Labor government's approval of a new gas drilling project in the Otway Basin is facing intense criticism from environmental groups, who argue that the decision jeopardizes the state's climate commitments and threatens a fragile marine ecosystem. The Annie gasfield project, spearheaded by Amplitude Energy, is slated to begin operations in 2028, extracting gas from a site just 9 kilometers off the coast near the iconic Twelve Apostles.

While the government touts the project's potential to supply a third of Victoria's gas needs, critics argue that this reliance on fossil fuels undermines efforts to transition to a cleaner energy economy. Energy and Resources Minister Lily D’Ambrosio acknowledged declining gas demand due to electrification but insisted the project would ensure supply for industries unable to electrify, a claim that activists say shields polluting industries from urgently needed reforms.

This approval flies in the face of the Labor government's own stated goals, including the revival of the State Electricity Commission and a target of 95% renewable energy by 2035, championed by former Premier Daniel Andrews. Approving new fossil fuel projects undermines the credibility of these commitments and risks locking Victoria into a carbon-intensive future, according to environmental advocates.

“Projected emissions from existing and planned fossil fuel developments have already used up the carbon budget to limit global heating to 2C,” warned Joy Toose, climate campaign manager at Environment Victoria. She emphasized that “Every new gasfield approved makes the path to a safe climate harder and more expensive,” highlighting the long-term environmental and economic costs of the decision. The proximity of the gasfield to the Great Ocean Road and the Twelve Apostles raises further concerns about potential environmental damage to a sensitive coastal environment.

Furthermore, critics argue that the government's justification for the project ignores the social and environmental justice implications. Continuing to rely on gas disproportionately impacts low-income communities and communities of color, who are more likely to live near polluting infrastructure and suffer from the health impacts of fossil fuel extraction and combustion. The focus on gas also diverts resources away from investments in renewable energy and energy efficiency measures that could create sustainable jobs and reduce energy poverty.