Australia faces up to Victoria’s gas folly

As gas supplies dwindle, LNG becomes the only viable solution in a state that has focused on transition

The government of the Australian state of Victoria’s decade-long efforts to wean itself off gas have left it in a difficult situation. Melbourne’s energy transition strategy has focused on switching residential and commercial gas users to electricity from green projects. Unfortunately for the state’s energy planners, Victorian gas demand has declined far slower than expected. Coupled with government inaction over falling local gas production levels, and the state is now expected to experience pronounced gas shortages within the next two years. Australian energy consultancy EnergyQuest’s latest report on the East Coast gas market warned that seasonal supply gaps will emerge in Victoria and Ne