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

Vantris Energy Lands Petronas Job on Malaysia’s Offshore Fields

Viridien Kicks Off Multi-Client Reimaging Program off Malaysia

ADNOC Takes FID on SARB Deep Gas Project Offshore Abu Dhabi

PV Drilling’s Jack-Up Rig Returns to Asia Ahead of April Drilling Ops

South Korean Firm Buys Into Indonesian Offshore Oil Block

DOF Bags Two Deals in Asia-Pacific Region

Velesto Agrees $63M Jack-Up Drilling Rig Sale with Indonesian Firm

Technip Energies Gets On Board Thailand’s First CCS Project

Eni Makes Significant Gas Discovery Offshore Indonesia

Brownfield Output Decline Accelerates, says IEA

Current News

Vantris Energy Lands Petronas Job on Malaysia’s Offshore Fields

Murphy Oil Appraisal Well Boosts Resource Outlook at Field off Vietnam

Viridien Kicks Off Multi-Client Reimaging Program off Malaysia

Petrovietnam Agrees First-Ever LNG Term Deal with Shell

ADNOC Takes FID on SARB Deep Gas Project Offshore Abu Dhabi

Jereh Group Delivers Oil Separation Systems for Petrobras’ FPSO Units

Offshore Rig Outlook: As 2025 Challenges Fade, Path Ahead Brightens

Offshore Energy and Boosting the Energy Efficiency of Water Processes

Low Demand, High Supply Keeps Asia LNG Spot Prices Flat

Following Big Loss in 2025, Oil Steadies

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