THE state government has cleared the final hurdle for gas drilling to start in waters off the Great Ocean Road.
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Origin Energy has been given a permit to tap into the Halladale gas field near the Bay of Islands National Park, 30 kilometres south-east of Warrnambool.
The decision to allow a petroleum production licence is the first time gas will be drilled in Victorian waters that extend five kilometres out to sea.
About 70 jobs will be created by the project.
Energy and Resources Minister Russell Northe said the decision would secure the state’s gas supplies.
“The Halladale project is a multi-million-dollar project that will help provide natural gas for residences and businesses — essential for cleaner electricity generation and domestic gas supplies,” Mr Northe said. “The gas will be processed at the Otway gas plant for electricity generation and domestic gas use.”
The licence allows the company to search for natural gas and “associated liquids”.
Gas was first discovered in Bass Strait (in federal waters) in 1965.
“This petroleum production licence is the first to be granted within Victorian state waters,” Mr Northe said.
The Halladale project has escaped the government’s moratorium on onshore gas drilling because the reserves are located within five kilometres of shore and can be reached drilling horizontally.
It has frustrated other gas companies, which want to start drilling on land nearby.
Origin won’t yet disclose the project cost or lifespan of the gas field.
“We expect the drilling and construction program will take 12-15 months to complete,” an Origin spokesman said.
“The workforce of approximately 70 jobs is required for the drilling operation.
“Once completed, the ongoing operation for the field will be primarily undertaken at the Origin-operated Otway gas plant near Port Campbell.”
Polwarth MP Terry Mulder said the project complied with environmental regulations.