Gas Production and Consumption

The majority of Victoria's natural gas is sourced from the Gippsland Basin and is produced at the Longford processing plant. A growing amount of gas is supplied from other gas fields in the Gippsland, the Otway Basins, offshore from the Bass Coast area and interstate.

At projected consumption rates, Victorian natural gas reserves that are currently known are expected to meet demand for at least the next 15 to 30 years.

Further information on Victoria's natural gas reserves can be obtained from the Earth resources webpage.

Victoria consumed a total of 263 petajoules (PJ) of natural gas in 2010, equivalent to around 18% of Australia's total consumption of natural gas. Victoria has the highest rate of access to natural gas in Australia, with reticulated natural gas available in most Victorian cities and large towns. The Government is facilitating the expansion of the natural gas network to other regional and rural areas through the Natural Gas Extension Program.

Share of Victorian Gas Consumption by Sector - 2010

Consumption shares for natural gas by sector in Victoria as at 2010 are 37% for residential use, 40% for industrial use, 12% for commercial use, 8% for gas fired power generation, and the balance of 3% is used in gas production and distribution, transport and the water sector.

Gas Transmission

Victoria's 1,900 km Principal Transmission System (PTS), covering Melbourne and central Victoria, is owned by GasNet and operated by AEMO. The majority of gas is supplied from the Longford facility in the Gippsland basin, with storage facilities that help meet demand during peak demand periods.

Victoria is also a net exporter of gas to other states via the gas transmission network.

As well as the PTS, other gas transmission networks in Victoria include the Eastern Gas Pipeline that transports natural gas from Longford to Sydney, the SEA Gas pipeline from Western Victoria to Adelaide, and the Longford - Tasmania Gas Pipeline.

AEMO is responsible for transmission planning in the Victorian gas market through its Annual Gas Planning Review. The information is provided to allow gas market participants to make informed decisions for their own planning and market strategies.

The Australian Energy Regulator (AER) is the economic regulator for Victoria's electricity and gas transmission networks.

Future energy

Victoria is transitioning to a cleaner energy future.

For almost a century, Victorians have enjoyed cheap, reliable and secure electricity from an energy supply that has barely changed.

More than 90 per cent of the electricity we use to power our homes, our businesses and our industries has, until now, come from brown coal.

Our reliance on brown coal for electricity makes us unlike any other state or territory. Brown coal produces very high levels of carbon pollution and as a result, energy generation produces the bulk of Victoria's carbon pollution.

If Victoria is to achieve deep cuts in carbon pollution, we must investigate renewable sources of energy, while also finding new ways of using coal through low-emissions technologies.