Successful projects for the 2025 SA Gas Initiative have been announced.
About the 2025 SA Gas Initiative
The 2025 SA Gas Initiative is a new $17.5 million initiative, designed to accelerate investment in a portfolio of gas projects in South Australia through targeted competitive grants. The portfolio has scope to include projects addressing natural gas supply, storage and infrastructure.
The Minister for Energy and Mining has established a Gas Security Infrastructure Fund (Fund) to deliver the 2025 SA Gas Initiative.
The objectives of the Fund are to support projects, studies and other activities of a public interest nature which enhance energy resources industry projects that will assist with meeting South Australia’s mid to long-term energy needs and transition to clean energy to support the achievement of Australia’s greenhouse gas emissions reduction targets.
The Australian Energy Market Operator (AEMO) 2025 Gas Statement of Opportunities forecast risks of peak day gas shortfall from 2028, and structural supply gaps emerging from 2029 in South Australia. The lead targeted outcome of the 2025 SA Gas Initiative will be significant projects that can help in meeting gas supply shortfalls predicted to impact South Australia from 2028.
The aggregate of grants will stimulate investment in an optimised and diverse portfolio of projects addressing:
- Increasing gas supply, including:
- Enhancing geological knowledge of areas within close proximity to existing infrastructure
- New technologies to lift productivity, and improve efficiency of gas production
- Gas capacity, including:
- Gas storage solutions
- Supporting infrastructure to unlock new gas supply or improve deliverability
Support will preference shovel-ready projects with the greatest likelihood of project delivery by the last quarter of calendar year 2028. Grants will be up to 50% of eligible project/project expenditure. Successful applicants will be required to provide minimum co-funding of 50% under this initiative.
Applicants must also have nominated how South Australian gas users will directly benefit from grant supported projects.
Successful projects under the SA Gas Initiative
Successful applicants for the SA Gas Initiative were announced by the Minister for Energy and Mining and the Premier on 20 February and 15 May 2026 respectively, allocating $17.5 million in funding to eight projects to stimulate investment in a range of projects that assist in meeting South Australia’s mid to long-term energy needs.
Estimates suggest that if projects are delivered in full, the projects facilitated by this grant fund could deliver more than 20 petajoules (PJ) of gas into the South Australian market.
| Applicant | Project | Location | Grant amount ($) |
|---|---|---|---|
| ADZ Energy Pty Ltd | Belote and Bezique Prospects Drill one of two exploration wells (Belote and Bezique) in PEL 677. | Cooper Basin, SA | 1,000,000 |
| Amplitude Energy Pty Ltd | East Coast Supply Project Upgrades to the Athena Gas Plant and reservation of 5.0 PJ of gas for South Australian customers over the first four years of gas production from the project, | Otway Basin, Victoria | 2,500,000 |
| Beach Energy Ltd | Penola Near Field Exploration Drill two near field exploration wells in the Penola Trough. | Otway Basin, SA | 2,500,000 |
| Beach Energy Ltd | Katnook Underground Gas Storage Feasibility study to utilise the existing depleted Katnook gas field for storage of gas. | Otway Basin, SA | 527,877 |
| Bass Oil Ltd | Kiwi Gas Field Commercialise the Kiwi gas field, including a 35 km pipeline and metering to connect to the existing Cooper Basin gas network. | Cooper Basin, SA | 3,500,000 |
| Santos Ltd | Cooper Basin Geothermal Pilot geothermal energy study, which will include the drilling of a vertical geothermal appraisal well. | Cooper Basin, SA | 2,500,000 |
| Vintage Energy Ltd | Vali Gas Field Drill and complete an additional well in existing Vali gas field. | Cooper Basin, QLD | 2,500,000 |
| Vintage Energy Ltd | Odin Gas Field Drill and complete an additional well in existing Odin gas field. | Cooper Basin, SA | 2,500,000 |
| TOTAL | 17,527,877 | ||
Key dates
Dates may be subject to change
| 30 October 2025 | Call for 2025 SA Gas Initiative project proposals |
| 28 November 2025 | Closing date for project proposals |
| Early 2026 | Announcement of successful proposals |
| Early 2026 | Funding Agreement issued and executed. Funding can be distributed from this date |
| June 2026 to March 2028 | Six-monthly progress and financial reports are submitted by successful applicants |
| No later than 30 September 2028 | Project delivery completed |
| 30 September 2028 | SA Gas Initiative program fully implemented – followed by final review and audit of outcomes |
Contact information
Comments and enquiries and should be made to the Department for Energy and Mining via email: DEM.SAGI2025@sa.gov.au
