Australia has approved the Annie Gas Field Project in waters off Victoria’s southwest coast near the Twelve Apostles, clearing the way for new offshore gas development as policymakers attempt to manage a difficult balance between energy transition goals and looming domestic gas shortages.

The project, led by Australian energy company Amplitude Energy, has received both Victorian and federal approvals and is expected to begin construction in 2027, with first gas targeted for 2028. The decision highlights the increasing policy tension facing Australia’s east coast gas market as Bass Strait production declines faster than demand can be displaced.

Annie Gas Field Project: A Politically Significant Approval

The Annie project sits in the offshore Otway Basin, approximately 9 kilometers from the coast near Port Campbell and Peterborough, close to the globally recognized Twelve Apostles tourism destination.

Victoria has been pursuing electrification and reduced household gas dependence. However, industrial demand and system reliability concerns continue to create dependence on transitional gas supply. Government officials argue the project is necessary to avoid supply shortfalls and stabilize prices for sectors that cannot yet fully electrify.

Amplitude Energy estimates the field could provide approximately 4% of east coast gas demand over a five-year production window. The project will connect into existing infrastructure from the Casino-Henry-Netherby gas system, lowering incremental infrastructure costs and accelerating commercialization.

The approval is also politically significant because it reflects a more pragmatic stance from Victorian authorities, who are increasingly balancing decarbonization goals with industrial competitiveness and supply security. This stance is also be seen in the development of Project Ulysses, a landmark SAF project in Australia’s Queensland.

Project Cost

While full project capex figures have not been publicly disclosed yet, Annie benefits from brownfield economics through utilization of pre-existing Otway Basin infrastructure.

Cost advantages include:

• tie-back to existing gas infrastructure
• reduced surface facility requirements
• lower transportation and processing costs

This infrastructure-led model also improves project economics versus standalone offshore developments.

Annie Gas Field Project Fact Sheet

Location: Near Twelve Apostles

Status: Approved

Construction Start: Expected 2027

First Gas: 2028

Supply Duration: 5 years

Estimated Market Contribution: 4% of east coast demand

Infrastructure Linkage: Casino-Henry-Netherby gas infrastructure

Basin: Otway

Project Developer and Stakeholders

Developer

• Amplitude Energy

Government Stakeholders

• Victorian Government
• Australian Federal Government

Annie Gas Field Project: What Lies Ahead

The Annie project is likely to become a benchmark case for Australia’s transitional gas strategy. By leveraging existing infrastructure and targeting domestic markets, the development may also provide policymakers with a politically defensible model for limited new gas investment during decarbonization.

However, the project also reinforces the structural reality that energy transitions are rarely linear. Industrial decarbonization remains more difficult than residential electrification, meaning targeted gas developments may continue to receive approvals even amid strong climate commitments.