The Bull

Monday 17

December, 2018 6:37 PM

Vic gas reserves 'not commercially viable'

Vic gas reserves 'not commercially viable'

A report shows Victoria has "relatively small" reserves of conventional onshore gas, which the government says justifies its ban on exploration drilling.

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By AAP 12.01.2018 04:36 PM

Victoria has no commercially viable onshore conventional gas reserves, a new report shows.

The report on gas reserves and development estimates Victoria holds 110 petajoules of onshore conventional gas and 10,738 petajoules offshore.

"In onshore Victoria, there are no proved and probable reserves," said the Victorian Gas Progress Report, released on Friday.

"The state does not have any defined resources of conventional gas in onshore areas that could be drawn on a commercial basis.

"It appears that the potential for onshore conventional gas is relatively small compared to past production and known offshore gas reserves in Bass Strait."

Neither conventional nor unconventional gas exploration is permitted in Victoria, and the Andrews government says the report justifies Labor's approach to gas exploration and development.

Produced as part of the government's 2017-2020 gas program, the report also says "while gas might be present, it may not be able to be extracted in a way that is safe, technically possible or commercially viable".

The Liberal-National opposition in 2017 said it would allow onshore gas exploration, but maintain a ban on fracking if it wins the 2018 state election.

Prime Minister Malcolm Turnbull has consistently pushed for Victoria and NSW to unlock their onshore gas reserves.

But Victoria's Treasurer Tim Pallas says Friday's report "stands in stark contrast to the ill-informed rhetoric of the Turnbull Government, whose mantra when it comes to gas - whether it's present under the ground or not - is to simply drill".

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