PERTH (miningweekly.com) – The Australian government will partner with the private sector to unlock gas resources in Victoria, in the hopes of bolstering domestic supply security.

The federal government on Monday announced that it had finalised a A$32-million commercial loan with GB Energy to accelerate the Golden Beach gas production and storage project that will help alleviate forecast gas shortfalls on the East Coast gas market.

The Golden Beach project, offshore from Gippsland, is expected to produce local gas for the domestic market for around two years before converting to an underground gas storage facility. The 12.5 PJ of storage will help meet demand for gas during times of peak demand and keep a cap on prices.

The Golden Beach project was one of four critical gas infrastructure projects identified in the Interim National Gas Infrastructure Plan, released last year, and is a key focus for the federal government’s A$38.7-million commitment of targeted support in last year’s budget to accelerate these priority projects and help alleviate the forecast gas shortfall.

Minister for Industry, Energy and Emissions Reduction Angus Taylor said the government would provide the commercial loan to help accelerate the project towards final investment decision.

“The government understands the importance of unlocking new gas supplies and critical infrastructure, such as gas storage, to build market resilience and put downward pressure on prices,” Taylor said.

“Through our gas-fired recovery we have committed to boost the gas market, unlock supplies and ensure Australia has secure and internationally competitive gas supplies to support households and job-creating industries.

“Industry and government have worked together to ensure our domestic gas prices have remained up to 80% below prices seen in Europe. It is clear the government has and will continue to back the gas sector,” said Taylor.