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

Shell Shuts Down Oil Processing Unit in Singapore Due to Suspected Leak

Floating LNG Conversion Job Slips Out of Seatrium’s Hands

BP Greenlights $7B CCUS Scheme Tied to Indonesia LNG Facility

Sapura Scoops Petrobras Contract for Pan-Malaysia Offshore Services

Beam’s AI-Driven AUV to Hit Offshore Wind Market in 2025

Eni Strengthens LNG Ties with Japan

India Opts Out of Buying Gas from Russia's Sanctioned Arctic LNG 2 Project

TotalEnergies Signs LNG Supply Deal with South Korea’s HD Hyundai Chemical

Saipem Nets $4B for Work at Qatar’s Giant Gas Field

ADNOC Signs 15-Year LNG Supply Deal with Indian Oil

Current News

Vestas Lands First 15MW Offshore Wind Turbine Order in Asia Pacific

Shell Shuts Down Oil Processing Unit in Singapore Due to Suspected Leak

Flare Gas Recovery Meets the Future

Pharos Energy Extends Licenses for Two Vietnamese Gas Fields

Offshore Drilling 2025: 3 Things to Watch During a Year of Market Corrections

Subsea Redesign Underway for Floating Offshore Wind

The Five Trends Driving Offshore Oil & Gas in 2025

China’s CNOOC Brings Bohai Sea Oil Field On Stream

Offshore Service Vessels: What’s in Store in 2025

ABS Approves Hanwha Ocean’s FPSO Design

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