Every new gas field approved makes the path to a safe climate harder
Off the south-west coast of Victoria, within sight of the Twelve Apostles, a new chapter in Australia's energy story is being written — one that reveals the deep tension between the immediate demands of industrial society and the longer horizon of a liveable climate. The Annie Gas Field Project, approved by both state and federal governments, will draw gas from beneath the seabed for five years beginning 2028, filling a portion of the supply gap left as Bass Strait's legacy fields exhaust themselves. It is a decision that speaks to how difficult it is for governments to hold two truths at once: that fossil fuels must end, and that the systems built upon them cannot be unwound overnight.
- Victoria faces a 52% drop in annual gas production by 2030 while consumption falls only modestly, creating a supply shortfall that policymakers say cannot be wished away.
- The approval of a gas field nine kilometres from one of Australia's most iconic coastlines has galvanised environmental groups who argue the carbon budget for 2 degrees of warming is already spent.
- Amplitude Energy insists the project's subsurface infrastructure will leave no visible mark on the landscape, and industry groups say businesses need supply certainty during the energy transition.
- The federal government is simultaneously calling for new offshore exploration nominations across Tasmania, Gippsland, and Bass basins, signalling this approval is not an isolated decision but part of a broader supply strategy.
- The central question now is whether Victoria accelerates its shift away from gas fast enough to make the Annie field a bridge — or whether it becomes a detour that entrenches dependence.
Victoria has approved the Annie Gas Field Project, an offshore development by Amplitude Energy located about nine kilometres from the coast near Peterborough, in waters close to the Twelve Apostles. Construction begins next year, with gas expected to flow by 2028 across a five-year operating life — contributing roughly 4 per cent of east coast gas demand at a moment when the state's existing Bass Strait supplies are rapidly depleting.
The case for approval rests on hard numbers. Victoria faces a projected 52 per cent fall in annual gas production by 2030, while consumption is expected to decline by only around 10 per cent over the same period. Energy Minister Lily D'Ambrosio described the decision as responsible stewardship for industries not yet able to electrify, while federal Resources Minister Madeleine King emphasised the gas would be reserved for domestic use. The federal government has also called for nominations to explore new offshore areas in Tasmania and Victoria's Gippsland and Bass basins.
Opposition has been swift and pointed. The Victorian Greens and Environment Victoria argue that approving new fossil fuel infrastructure while managing a climate transition is a contradiction the government cannot sustain. Climate campaign manager Joy Toose invoked the IPCC's finding that existing and planned fossil fuel projects have already consumed the carbon budget needed to hold warming to 2 degrees, warning that each new approval makes a safe climate harder and more costly to achieve.
Amplitude Energy has sought to reassure critics that the project's footprint will be minimal — subsurface and invisible beyond a temporary drilling phase — and notes that gas operations have coexisted with tourism and agriculture in the region for over two decades. The Victorian Chamber of Commerce welcomed the decision as a necessary investment during the transition period.
What the approval ultimately represents — pragmatic bridge or costly detour — will depend on how quickly Victoria can accelerate its shift away from gas in the years the Annie field is producing. The tension between keeping industries running today and decarbonising for tomorrow has rarely been more visibly drawn.
Victoria's government has given the green light to a new offshore gas field that will sit in the waters near the Twelve Apostles, one of Australia's most recognizable natural landmarks. The Annie Gas Field Project, developed by ASX-listed company Amplitude Energy, will be built about nine kilometres off the coast near Peterborough and Port Campbell. Work begins next year, with gas flowing to market by 2028. Over its five-year operating life, the field is expected to supply roughly 4 per cent of the east coast's total gas demand—a modest but meaningful contribution as Victoria faces a widening energy gap.
The approval reflects a genuine tension in energy policy. Victoria's legacy gas supplies in the Bass Strait are running dry, and the state faces a projected 52 per cent drop in annual gas production by 2030 even as consumption falls by just 10.5 per cent over the same period. The Australian Energy Market Operator has pushed back its forecast for peak-day shortfalls to 2029, but the gap remains real. Energy Minister Lily D'Ambrosio framed the decision as responsible stewardship, arguing the project would secure affordable, locally produced gas for industries that cannot yet switch to electricity. Federal Resources Minister Madeleine King added that the gas would be reserved for domestic use, helping to insulate Australia from supply shocks. The government is also calling for nominations to explore new offshore areas in Tasmania and Victoria's Gippsland and Bass basins.
Yet the approval has ignited fierce opposition from environmental groups who see it as a step backward. The Victorian Greens argue the government should not be locking in new fossil fuel infrastructure while claiming to manage an energy transition. Environment Victoria's climate campaign manager Joy Toose pointed to the Intergovernmental Panel on Climate Change's assessment that existing and planned fossil fuel projects have already consumed the carbon budget needed to limit global warming to 2 degrees. "Every new gas field approved makes the path to a safe climate harder and more expensive," she said. These groups have fought successfully against other drilling proposals along the south-west coast, and this approval represents a significant setback for their efforts.
Amplitude Energy has sought to minimize concerns about the project's footprint. A company spokesperson noted that gas production has operated in the region for more than two decades alongside tourism, agriculture, and other industries. The infrastructure will be subsurface and invisible except during the temporary drilling phase, the company said, meaning no visual impact on the iconic landscape. The Victorian Chamber of Commerce and Industry welcomed the decision, with acting chief executive Amelia Bitsis arguing that businesses facing pressure on energy costs and supply certainty needed this kind of investment during the transition period.
The approval sits at the intersection of two competing urgencies: the immediate need to keep the lights on and industries running, and the longer-term imperative to decarbonize. The government has positioned itself as managing both, but the environmental movement sees the new gas field as a choice that privileges the former over the latter. What unfolds over the next two years—whether Victoria accelerates its shift away from gas faster than the new field can supply it, or whether the field becomes a crutch that delays that transition—will test whether this approval was pragmatism or a costly detour.
Notable Quotes
This approval unlocks more affordable, locally produced gas for Victorians, helping to secure supplies for the industries that still rely on gas.— Victorian Energy and Resources Minister Lily D'Ambrosio
Every new gas field approved makes the path to a safe climate harder and more expensive.— Joy Toose, Environment Victoria climate campaign manager
The Hearth Conversation Another angle on the story
Why approve a new gas field when the government is supposedly pushing households and businesses toward electricity?
Because the transition isn't instant. Some industries can't electrify yet, and Victoria's existing gas supplies are genuinely running out. The field buys time.
But doesn't that time just delay the real work of switching everything over?
That's exactly what the environmental groups argue. They say every year spent on new gas infrastructure is a year not spent building the alternatives that would make gas unnecessary.
What about the climate math? Is 4 per cent of the east coast's gas demand really worth the carbon cost?
The IPCC says we've already used up our carbon budget for 2 degrees of warming. So from that perspective, no amount of new fossil fuel is worth it. But the government is betting that without this supply, energy prices spike and the transition stalls.
Does the location matter—near the Twelve Apostles, a major tourist site?
It matters politically and symbolically. But the company says all the infrastructure is underwater, invisible. The real tension isn't visual; it's philosophical. You're building new fossil fuel capacity while claiming to move away from it.
Who actually wins if this goes ahead?
Industries that still need gas in the short term. Businesses worried about energy costs. But the environmental groups lose ground on climate targets, and the transition gets messier and more expensive down the line.