New offshore gas zones open for bidding about 60km from King Island

Five new offshore gas exploration areas have been released for public consultation in the Otway Basin, with the closest zone located about 60 kilometres west–south-west of King Island, according to official Commonwealth maps.

The release, announced on 11 December 2025 by Federal Minister for Resources and Northern Australia Madeleine King, involves new offshore areas only and does not approve drilling, seismic surveying or gas production. Instead, it opens the areas for public consultation and potential bidding as part of the Federal Government’s offshore petroleum acreage release program.

Commonwealth block diagrams published by the Department of Industry show three of the five release areas lying offshore to the west of Tasmania, in Commonwealth waters of the Otway Basin — a long-established offshore petroleum region extending from Victoria’s south-west coast toward Tasmania. Based on those official maps, the closest release area, known as T25-3, lies approximately 60 kilometres from King Island, measured as a straight-line distance from Currie to the nearest boundary of the zone. Two other Tasmanian-adjacent areas are located further west, at approximately 90 kilometres and 109 kilometres from the island. All distances are indicative and based on published Commonwealth coordinates.

In releasing the areas, the Federal Government said the zones had been designed to avoid Australia’s marine parks, including new and existing marine park protection zones. The release blocks do not overlap marine park boundaries, and buffer distances have been applied to reduce potential impacts on protected marine environments.

Marine parks remain fully protected under existing Commonwealth law, and exploration activity cannot occur within National Park Zones, which provide the highest level of protection, or within Habitat Protection Zones, which restrict activities that could damage seabed habitats or ecological values. The release of acreage does not alter marine park boundaries or protection levels.

Even outside marine park boundaries, any proposed offshore gas exploration would still be subject to strict environmental impact assessment and approval by the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA). Projects can be refused or heavily conditioned if environmental risks — including impacts on marine life, fisheries or nearby protected areas — cannot be adequately managed.

Minister Madeleine King said the release was intended to support future energy security as Australia transitions toward net-zero emissions, citing forecasts of potential gas shortfalls later this decade.

“Exploration and new discoveries will play an important role in underpinning Australia’s energy needs and supporting households and industry as we meet our net-zero commitments,” the Minister said.

While the zones are offshore and located in Commonwealth waters, King Island is the closest Tasmanian community to the nearest release area, placing local residents, marine users and fishers among those with a direct interest in the consultation process. Environmental organisations have criticised the decision, warning that activities such as seismic surveying outside marine park boundaries may still affect species that move through protected zones, while industry groups argue new exploration is necessary to maintain supply and avoid future price pressures.

Public consultation on the five offshore areas remains open until 6 February 2026, after which companies may apply for exploration permits by 30 June 2026. Any future activity would still require approvals before it could proceed.

Editor’s note: Distances quoted are approximate straight-line measurements based on official Commonwealth maps. The release of offshore acreage does not approve drilling or production.