PERTH (miningweekly.com) - The Australian Petroleum Production and Exploration Association (Appea) has welcomed the Victorian government’s plans to discuss the possible development of an onshore natural gas industry.

The Victorian government this week launched a community and stakeholder engagement programme aimed at providing factual information and an opportunity to participate in discussions regarding the possible future development of onshore natural gas, which would include tight, shale and coal seam gas.

“This engagement process is designed to give Victorians the chance to have their say about onshore natural gas and to let us know about their key concerns on this important issue,” Energy and Resources Minister Russell Northe said.

“A range of consultation activities will now be undertaken across the state with the assistance of an independent facilitator, including information open days, meetings with community groups, local government and farmers, and workshops to discuss specific issues in greater depth.

“Our intent is to gain a deeper understanding about the issues and range of views across the community, particularly in the rural and regional communities where commercially viable sources of onshore natural gas might occur,” Northe added.

Appea COO for Eastern Australia Paul Fennelly said that the industry body was keen to take part in the consultation process and to contribute to a fact-based discussion about the safe operation of industry and its economic potential for Victoria.

“For too long, protracted decision-making processes and planning have brought the state’s onshore gas industry to a standstill.

“Victoria remains the only state in Australia with a moratorium on gas exploration, yet Queensland, for example, is forging ahead with projects worth almost A$70-billion that have created 40 000 jobs, most in regional communities.”

Fennelly pointed out that the Victorian Gas Market Taskforce in 2013 reported the urgent need for onshore gas development, warning that rising gas prices would have a negative impact on Victoria’s manufacturing base.

The report noted that the only sensible course of action was for the Victorian government and other eastern states to promote production of additional gas supply, warning that alternative proposals, such as government reservations or subsidies would not address the essence of the issue either in the short or long term.

The report concluded that an onshore gas industry could not only provide economic benefits to farmers, revitalise regional communities and create jobs, but could also be managed to conserve the environment.

Northe, meanwhile, said that the state government would not risk water aquifers or agricultural production in its hunt for gas.

“That is why we are consulting widely, banning BTEX fracking chemicals, putting a moratorium on fracking itself and carrying out scientific studies of the potential impacts of an onshore natural gas industry on Victoria’s surface water and groundwater,” he said.

The state government announced in November last year that the moratorium on new exploration licences for onshore natural gas and on hydraulic fracturing, or fracking, would be extended until at least July 2015, while community consultation and independent water studies were carried out.