The Victorian Chamber of Commerce and Industry (VCCI) has welcomed approval of the offshore Otway Basin gas project “Annie,” describing the development as an important step toward strengthening Victoria’s future energy security and supporting business confidence, including across the manufacturing sector, during the transition to net zero.
The project, led by Amplitude Energy, comes as Victoria faces increasing pressure on future gas supply, with the Australian Energy Market Operator forecasting potential peak-day shortfalls later this decade as production from the Bass Strait declines.
In a statement, VCCI said it had consistently advocated for a “clear, commercially realistic and technology-neutral” energy roadmap that balances affordability, reliability and security alongside emissions reduction goals.
The chamber noted that gas continues to play a significant role in Victoria’s economy, with more than two-thirds of households connected to gas and many manufacturers, food producers, exporters and industrial businesses continuing to rely on it as a key energy source.
VCCI Acting Chief Executive Amelia Bitsis said the approval reflected the need for “practical, balanced energy policy” that supports both economic stability and emissions reduction.
“Victoria’s energy transition must continue but it must also work,” Bitsis said.
“This is a positive and sensible step toward ensuring Victoria has the reliable and affordable energy supply businesses and households need during the transition to net zero.”
Bitsis said gas would remain an essential part of Victoria’s energy mix for some time, particularly for manufacturing, industrial operations and small businesses that continue to depend on it.
“We have consistently said gas will remain an essential part of Victoria’s energy mix for some time yet, particularly for manufacturing, industrial operations and thousands of small businesses that rely on it every day,” she said.
The chamber also warned that unreliable or unaffordable energy could affect investment confidence, industrial competitiveness and employment outcomes across the state.
According to VCCI, the new project is expected to help support local supply at a time when Victoria risks becoming increasingly reliant on imported gas, which could place additional upward pressure on prices and energy security.
“Unlocking additional local supply helps strengthen energy security, our sovereign capability and supports investment confidence and reduces the risk of further price shocks such as the current fuel crisis,” Bitsis said.
She added that Victoria’s transition to net zero should remain “orderly, practical and commercially realistic,” with continued investment in renewables and emerging technologies alongside ongoing gas supply to support the broader economy.
