VIC Allow Offshore Gas Storage in Empty Underground Reservoirs (Plus Stricter Regulatory Oversight)

Offshore Petroleum and Greenhouse Gas Storage Amendment Bill 2024

6 Nov 2024: Passed by Parliament and signed off by the governor.

This bill kicks in: TBA

Legislative Assembly

Legislative Council

Assent

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Topics

natural reservoirs offshore energy oil and gas petroleum storage resource ownership

Introduced by: The Hon Ingrid Stitt MLC (ALP); Lily D'Ambrosio MP (ALP)

Links to official parliament websites

Official page: progress through parliament

Effects of this bill

If this bill passes, it means that:

Criminal offence for intentionally carrying out underground petroleum storage operations in offshore areas without a licence or authorisation, punishable by up to 5 years imprisonment
Petroleum project inspectors may access structures, vessels, aircraft or buildings in offshore areas if they suspect the asset is used for underground petroleum storage
The Resources Minister or a petroleum project inspector can compel people to provide information, documents or evidence relating to underground petroleum storage
Holders of petroleum production licences gain the right to inject petroleum into natural reservoirs for later recovery
Ownership of injected petroleum stays with the original owner unless the petroleum production licence is cancelled or surrendered, in which case ownership transfers to the Crown
Registered holders of petroleum production licences must perform storage operations in a workmanlike manner and according to good oilfield practice
People operating under permits or leases in offshore areas must not interfere with underground petroleum storage more than is necessary to perform their duties

News articles and press releases

ChatGPT Summary

ChatGPT 4o — 2024-09-26

This bill allows gas to be stored in empty underground reservoirs located offshore in Victorian waters. These reservoirs were once used to extract gas, and now they will be repurposed to store gas that can be used when demand is high. By allowing this, the bill helps ensure that Victoria has a reliable supply of gas, especially during periods when its needed the most, like in winter. It also supports the use of gas for electricity generation and encourages responsible oversight of the companies running these storage projects.