Australian State Bans Gas to New Homes from 2024 in Push to Cut Emissions

Friday, July 28, 2023

The Australian state of Victoria will ban natural gas connections to new homes from next year as part of a plan to cut emissions and lower energy bills, the state climate action minister said on Friday.

Australia's second-most populous state is the country's largest consumer of natural gas with around 80% of homes connected but also has ambitious plans to reach net zero emissions by 2045, five years ahead of the federal government. 

Minister for Climate Action Lily D'Ambrosio said on Friday that new homes requiring planning permits must connect to all-electric networks from January 2024.

The gas sector contributes 17% of the state's emissions. 

"Reducing our reliance on gas is critical to meeting our ambitious emission reduction target of net zero by 2045 and getting more Victorians on more efficient electric appliances which will save them money on their bills," D'Ambrosio said in a statement.

The changes will apply to all new public buildings yet to reach the design stage, including housing, schools, and hospitals.

The plan comes as southeastern Australia faces potential gas shortages from mid-decade as output falls from the offshore fields, operated by Exxon Mobil Corp, that have long supplied the region.

The ban will do little to help the climate because it will push households onto the coal-based electricity grid, according to a statement from the Australian Petroleum Production and Exploration Association.

Power generation in Victoria, heavily dependent on coal, accounts for about half of the state's carbon emissions.

"The Victorian Government is taking choice away from consumers for limited climate benefit while ignoring the fact that the best way to bring gas prices down is to invest in more gas supply," said Chief Executive Samantha McCulloch

Rewiring Australia, a non-profit which advocates for electrification, backed the move and said "electrification is the fastest and most cost-effective way to shave thousands of dollars a year from energy bills and lower our emissions."

Australia last month finalized a package of rules for the domestic gas market including a cap on wholesale prices that was first introduced in December.


($1 = 1.4932 Australian dollars)


 (Reporting by Lewis Jackson; Editing by Stephen Coates and Sonali Paul)

Categories: Energy Industry News Activity Gas Australia/NZ

Related Stories

Thailand Cancels Offshore Energy Exploration Pact with Cambodia

CNOOC’s First Quarter Profit Rises on Higher Oil Prices, Output

United Arab Emirates Exits OPEC and OPEC+

Saipem Poised for Middle East Repair Work After Iran War

Bureau Veritas Expands Offshore Services with New Asia Hub

Oil Prices Jump as Ships Come Under Fire in Strait of Hormuz

Strike Threat Grows at Ichthys LNG after Workers Reject Deal

MidEast Energy Output Recovery to Take Two Years, IEA Says

Saipem Bags $400M in Offshore Contracts from Aramco in Saudi Arabia

Iran War Reshapes Global LNG Trade

Current News

ADNOC Drilling Finalizes MB Petroleum JV, Expands Regional Fleet

Brent Near $114 as Middle East Conflict Continues

Thailand Cancels Offshore Energy Exploration Pact with Cambodia

Vessel Sector Deep Dive: WTIVs

Indonesia’s Mako Gas Project on Track for First Gas in 2027

CNOOC’s First Quarter Profit Rises on Higher Oil Prices, Output

UAE Exit Weakens OPEC, Raises Risk of Price War

United Arab Emirates Exits OPEC and OPEC+

Technology as Enabler of Energy Security in Offshore Asia

Saipem Poised for Middle East Repair Work After Iran War

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com