Parliamentary inquiry puts spotlight on South Gippsland’s energy future

THE state parliament’s Environment and Planning Committee visited South Gippsland last week to hear from local government, industry and community on the decommissioning of the region’s oil and gas infrastructure.

The visit included a tour of Esso’s Barry Beach Marine Terminaal at Corner Inlet and a community session in Leongatha as part of the Parliamentary Inquiry into Decommissioning Oil and Gas Infrastructure.

The inquiry was established by the Legislative Council in August 2024 and is examining approximately 400 offshore wells and more than 23,000 kilometres of onshore pipeline across Victoria.

The estimated cost to decommission oil and gas infrastructure nationally is a $60 billion with concerns the financial liability could fall to Victorian taxpayers if companies fail to meet their obligations.

Earlier hearings were told subsea pipelines may contain naturally occurring radioactive materials, mercury, hydrocarbons and heavy metals that pose a risk to human health and the marine environment.

Committee member and The Nationals’ Member for Eastern Victoria Melina Bath said the visit showcased South Gippsland’s long-established capacity to support major projects.

“For almost 60 years South Gippsland has been central to Victoria’s energy needs,” Ms Bath said.

“Barry Beach and Esso’s Bass Strait operations have delivered stable skilled employment and established the region’s offshore energy industry.

“Being the first major decommissioning project of its kind in Australia, it’s vital strong environmental standards are maintained to give locals confidence and protect our coastline.”

Ms Bath said Esso explained it was committed to safety, environmental care, supporting local workers, applying best practice science and meeting its legal duties.

She said the committee heard strong evidence about the infrastructure required to support decommissioning and the region’s potential transition to renewables.

“South Gippsland Shire Council reinforced the need for government investment in transport infrastructure so decommissioning proceeds safely and efficiently for locals,” Ms Bath said.

“It was made clear increased workforce and freight movements will place pressure on local roads and services and targeted government support and community benefit schemes are needed to prevent communities from bearing the brunt of these impacts.

“Importantly, improving core infrastructure also positions South Gippsland to seize future opportunities in offshore energy with ports like Barry Beach central to long-term operations and maintenance.

“State and federal government must ensure host regions like ours see real returns including secure jobs, strong infrastructure and long-term economic gains.”

The committee will report to parliament by June 2026.