Permits will go to Esso and Beach Energy in the Otway and Sorrell Basins offshore Victoria and Tasmania as well as to Chevron, INPEX, Melbana and Woodside Energy on the west coast, Resources Minister Madeleine King announced on Tuesday.
The independent Climate Council is calling for Australia to stop issuing offshore exploration licences altogether, saying the world doesn't need to stockpile new supplies.
"Exploring for more oil and gas now is like building Video Ezy stores in the age of Netflix," head of policy and advocacy Jennifer Rayner said.
Natural gas will remain a critical part of Australia's energy mix for to 2050 and beyond. (Dean Lewins/AAP PHOTOS)
But regulators have warned the domestic east coast market may experience gas supply shortfalls as early as 2027 and forecast a deficit for west coast users from 2024 to 2029, despite Australia being one of the world's top LNG exporters.
"As ageing coal generation comes offline in coming years, gas will continue to be needed to firm renewable energy generation and as a backup during peak energy use periods," Ms King warned.
She said gas was "critical for the transition" but it has been two years since the last petroleum acreage release in what used to be an annual bonanza.
Australian Energy Producers CEO Samantha McCulloch said new exploration was critical to maintaining a pipeline of projects and urged the federal government to open the next round of petroleum acreage permits as soon as possible.
"The Future Gas Strategy made clear that natural gas will remain a critical part of Australia's energy and net zero transformation, to 2050 and beyond," Ms McCulloch said.
Regulators warn the domestic market may experience gas supply shortfalls as early as 2027. (Joel Carrett/AAP PHOTOS)
"Exploration is an essential part of this – as the first step in delivering the natural gas Australia needs to power industry, back up renewables and fast-track the phase out of coal," she said.
Ten permits will also go to carbon capture and storage (CCS) exploration, as producers look to repurpose depleted wells to store greenhouse gas emissions.
Ms McCulloch said the awarding of offshore acreage for CCS was crucial to the net-zero ambitions of Australia and the region.
The Australian Marine Conservation Society said the permits were a "farce" as allowing more exploration and dumping carbon pollution under the sea floor would increase pressure on stressed oceans and already endangered marine life.
"Permits released today will allow companies such as Esso/ExxonMobil to repurpose rusting old rigs and infrastructure, which have had two reported leaks and spills just this year, for dumping carbon in Bass Strait," campaigner Louise Morris said.
Some of the permits are for Australia's southeast waters, which she said were already suffering major impacts from climate change, warming three to four times faster than the global average.
"Esso/ExxonMobil currently has proposals to pump carbon pollution from its Longford gas plant in Gippsland under the ocean, as part of the SEA CCS project," Ms Morris said.
Australian Conservation Foundation CEO Kelly O'Shanassy said the burning of gas was supercharging heatwaves, bushfires, flooding and coral bleaching.
"Expanding the highly-polluting gas industry is a recipe for climate disaster," she said.
