Push for state gas policy changes

Farmers would receive royalties and a final say on gas projects under a new policy designed to fix Victoria’s energy crisis.

Shadow Energy Minister David Southwick.

Shadow Energy Minister David Southwick released the Opposition’s new energy policy this week, which he said could get new gas flowing in six to 12 months.

Under the policy a ban on new onshore gas projects would be lifted, but a ban on fracking would remain.

Any new gas supplies found would need to service Victoria, in a bid to reduce power prices which have risen sharply in the past 12 months.

‘‘We know the dairy industry is suffering from escalating power prices and they need the gas,’’ Mr Southwick said.

He re-assured farmers a policy change would keep them in control of their land through a right of veto and a 10 per cent royalty payment on what gas is found.

‘‘If the industry is not able to convince the landowners, then the landowners have the right to say no,’’ he said.

There would be no right of appeal for industry if the landowners vetoed.

The policy looks set to be one of the major policy fights at next year’s Victorian Government elections.

Under current legislation onshore gas exploration and is under moratorium until June 30, 2020.

With lower barriers to entry for onshore gas production than offshore, he said Victorians could see the benefit of increased prices soon if the policy is adopted.

All gas produced would be for Victorian consumption and not for the export market, but this could be changed.

‘‘If we have an abundance of gas or there is an emergency situation in the other states there is an opportunity for the minister to step in,’’ he said.

Although he planned to take the policy to next year’s election, he called on Premier Daniel Andrews to ease the moratorium now.

Story from today’s Shepparton News - "Push for state gas policy changes".