Australian officials have approved a new offshore gas project in Victoria's Otway Basin, a decision drawing fierce criticism because it would expand gas production near one of the country's most famous coastal destinations. 

The Annie gasfield project, backed by Victorian and federal Labor governments, is planned off the Great Ocean Road near the iconic Twelve Apostles and could bring a major new gas supply online even as Victoria says it is working to accelerate its transition to cleaner energy.

What's happening?

According to the Guardian, federal and Victorian authorities have approved Amplitude Energy's Annie gas development in the Otway Basin. The site is offshore near Peterborough and Port Campbell and roughly 7.5 miles west of the Twelve Apostles.

Production is expected to begin in 2028. Victoria's energy and resources minister said the project could supply as much as 65 petajoules of gas, or more than a third of the state's yearly use.

State officials say the project could help meet demand from industries that have been slower to electrify, even as overall gas use falls. Environmental groups, however, sharply criticized the decision. Greenpeace Australia Pacific said the development could put a "pristine ocean environment" at risk, while Environment Victoria argued that every new gasfield approval makes the path to a safe climate "harder and more expensive."

The approval stands out because it is the second major gas project approved during Victoria's current Labor term, even as the state promotes a rapid renewable energy buildout and a target of reaching 95% renewable energy by 2035.

Why is this gasfield raising concern?

Approving a new gas project locks in more fossil fuel extraction at a time when scientists and climate advocates say the world needs to move in the other direction to limit rising global temperatures. Gas is often framed as a cleaner bridge fuel, but it still creates planet-heating pollution when burned. Methane leaks can make its overall climate impact even worse, since methane is a particularly powerful heat-trapping gas.

Critics also point to the location. The Otway Basin project sits near a highly valued stretch of coastline known for tourism, marine life, and dramatic natural scenery. Expanding drilling in the area raises concerns about habitat disruption and the industrialization of a sensitive ocean environment.

There is also a broader public health and economic dimension to projects like this one. Gas, oil, and coal worsen the extreme weather disasters that destroy homes, livelihoods, and local economies. They also contribute to air and water pollution linked to asthma, heart disease, cancer, and premature death. At the same time, households can be left dealing with high energy bills while these companies continue to profit. 

Supporters of the project argue that Victoria remains heavily reliant on gas, particularly for manufacturing and industrial heat. According to the Guardian, the Australian Energy Market Operator has delayed its expected peak-day gas shortfall to 2029, pointing to extra supply, new infrastructure, and reduced demand.

For opponents, that makes this look less like a necessity and more like a choice to prolong gas dependence instead of moving faster on cleaner alternatives.

What's being done about new gas drilling in Victoria?

The good news is that Victoria is not starting from zero on clean energy. The state has already committed to a major expansion of renewable power, and experts say the most effective path forward is to speed up that transition rather than deepen reliance on new gasfields.

That means building more wind and solar, adding battery storage and pumped hydro, and expanding transmission so renewable electricity can get from where it is generated to where people actually need it. Energy experts have repeatedly said transmission is a critical part of replacing aging coal plants and keeping a cleaner grid more reliable.

Electrification is another key part of the solution. Homes and businesses can lower gas demand by switching to efficient electric appliances such as heat pumps, induction cooktops, and electric hot water systems. For the industry, the shift is more difficult but still essential, and targeted support can help factories adopt cleaner technologies over time.

Holding oil, gas, and coal companies accountable is also part of the picture. That includes closer scrutiny of new drilling approvals, tougher rules on methane pollution and environmental risks, and transition planning that protects workers and local communities instead of leaving them behind.

For everyday Australians, practical steps include supporting policies that expand renewable energy and storage, backing local grid upgrades that make clean power more accessible, and choosing electric options at home when replacing old gas appliances. Those changes can cut pollution, improve indoor air quality, and lower energy costs over time — especially when paired with rooftop solar and batteries where they make sense.

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