The Amplitude Energy's Annie project in Victoria's offshore Otway Basin is expected to increase the state's storage capacity by 70 per cent once it begins operating by 2028.Â
Victorian Energy Minister Lily D'Ambrosio believes unlocking a gas reserve will help cost-of-living pressures.
"This approval unlocks more affordable, locally produced gas for Victorians helping to secure supply for the industries that still rely on gas," she said.
It comes as an inquiry into a gas export tax continues to pressure Prime Minister Anthony Albanese, with hopes fading that the proposal will be included in the budget.
A Greens-led parliamentary inquiry into the taxation of Australia's gas exports is set to release its final report on Thursday.
But advocates for the change are pessimistic it will be included in Tuesday's budget after Mr Albanese killed off the prospect of a new tax.
Instead he prioritised maintaining the country's reputation as a reliable supplier of gas to Asian trading partners to ensure fuel supplies.
While Greens Senator Steph Hodgins-May and independent David Pocock will argue in favour of a new tax in the report, Labor and coalition members of the committee are set to advise against it.
But Greens Leader Larissa Waters will promise the minor party will continue to fight for the new tax beyond the budget.
"We are not going to stop pushing for gas companies to pay their fair share and for regular Australians to reap the benefits of cheaper, cleaner energy," she will say in Sydney on Thursday.
Instead of Labor's plan to set up a gas reservation scheme, which could cement gas use, Senator Waters will call for revenue from a new export tax to help speed up electrification of freight, according to an extract of a speech she will deliver to the Smart Energy Council.
A campaign led by Senator Pocock and the Australia Institute to introduce a 25 per cent tax on gas exports has gained widespread community support in recent months.
The left-leaning think tank claimed the tax would bring in $17 billion extra in revenue each year
The gas industry argues it already pays almost $22 billion in taxes and royalties per year, and the export tax proposal would make future projects financially unviable.
