Victoria Approves New Offshore Gas Field Near Twelve Apostles

The Annie Gas Field Project, located 9km off Victoria's coast, has received federal and state approval. Construction begins 2025, with first gas expected by 2028.

The federal and Victorian governments have approved a production license for Amplitude Energy's Annie Gas Field Project, an offshore gas development located approximately 9 kilometers off the coast of Peterborough and Port Campbell, near the Twelve Apostles. Construction is scheduled to begin in 2025, with gas delivery expected from 2028.

Project Details

The project is located in the Otway Basin and will utilize existing infrastructure from the Casino-Henry-Netherby gas field.

Amplitude Energy stated the project is expected to produce gas for up to five years and could supply up to 65 petajoules of gas annually — a quantity equivalent to over one-third of Victoria's annual gas consumption. The company added that the project would supply approximately 4% of the Australian east coast's gas demand over its operational period.

All infrastructure is subsurface, which the company stated will result in minimal visual impact, and the project underwent extensive community consultation.

Government Rationale

Victorian Energy and Resources Minister Lily D'Ambrosio stated the approval aims to secure supplies for industries that continue to rely on gas. She noted that while demand for gas is decreasing due to electrification, the field would ensure supply for sectors that cannot easily switch.

Federal Resources Minister Madeleine King stated the gas is intended for domestic use to mitigate the risk of supply shortfalls.

Energy Market Context

The project is being developed as Victoria faces declining gas production from the Bass Strait. The Australian Energy Market Operator (AEMO) forecasts a peak-day gas shortfall by 2029. In March 2025, AEMO pushed back this forecast from an earlier date, citing new infrastructure, increased supply, and reduced consumption.

Estimates indicate Victoria's annual gas production will decline by 52% by 2030, while gas consumption is projected to decrease by 10.5% over the same period. The Victorian government is simultaneously working to transition households and businesses to electric power.

Reactions to the Approval

Opposition

• Victorian Greens: Leader Ellen Sandell criticized the gas field approval, accusing major parties of prioritizing fossil fuel corporations over the future of Victoria. The party argued the project slows the energy transition.
• Greenpeace Australia Pacific: Joe Rafalowicz stated the project risks the ocean environment and climate.
• Environment Victoria: Joy Toose stated the project would set back the clean energy transition and noted that projected emissions from existing and planned fossil fuel developments already exceed the carbon budget for limiting global heating to 2°C.

Support

• Victorian Chamber of Commerce and Industry: Described the project as a step toward reliable energy supply during the transition.
• Grattan Institute: Alison Reeve noted that while reducing gas use makes sense, some industries in Victoria face challenges in moving away from gas.

Related Political Context

This is the second major gas project approved by the Labor government this term. The 2022 state election campaign featured then-Premier Daniel Andrews pledging to revive the State Electricity Commission to accelerate the renewable energy transition toward a 95% renewable energy target by 2035.

On the same day as the gas field approval, the Victorian Coalition announced that if elected in November 2025, it would pause and review all major transmission line projects — including the VNI West and Western Renewables Link — and the state's renewable energy zones. Nationals leader Danny O'Brien argued that VNI West had lost social licence due to laws allowing VicGrid access to private land. The Coalition instead proposed "urban solar parks" on commercial and industrial rooftops in greater Melbourne.

Alison Reeve countered that adding solar to commercial buildings is often impractical due to roof weight limits, and that transmission lines are essential for connecting renewable sources to users. Joy Toose criticized the Coalition's plan, stating it would "strangle Victoria’s renewable energy industry and drive up power bills."