Imagine a gas well leaking methane into the ocean for over two years, unchecked and unnoticed by most. This is exactly what’s happening off the coast of Victoria, Australia, where a gas well owned by billionaire Kerry Stokes’ Seven Group Holdings has been silently contributing to climate change. But here’s where it gets even more alarming: despite promises to fix the leak, the company has failed to take action, sparking outrage from regulators and environmentalists alike.
The Longtom gas field, located 30 kilometers southwest of the Gippsland town of Marlo, has been dormant since 2015. However, a minor leak detected in one of its shut-in wells in 2023 has been seeping methane into the ocean ever since. Methane, a greenhouse gas up to 80 times more potent than carbon dioxide over two decades, is a major driver of global warming, responsible for roughly a third of the planet’s rising temperatures. Fugitive leaks like this from oil and gas infrastructure are a significant yet often overlooked contributor to this crisis.
And this is the part most people miss: Seven Group, despite pledging to address the issue, has fallen short of its commitments. The National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) recently issued a notice criticizing the company for failing to remediate the leak and monitor the field, actions it promised to undertake in 2023. This isn’t just a breach of trust—it’s a potential violation of regulations and a stark example of what environmentalists call an “erosion of good industry practice.”
NOPSEMA has given Seven Group until March 31 to assess the well’s barrier conditions, stop the leak, and reinstate continuous monitoring of the Longtom field. But conservationists argue this isn’t enough. Freja Leonard of the Australian Conservation Foundation urges the regulator to impose penalties, stating, “Our shared environment isn’t the gas industry’s plaything.” Stan Woodhouse from Friends of the Earth adds, “Companies know they can dodge their obligations when violations are met with meek requests to do better.”
Here’s the controversial part: While Seven Group claims it’s already taking action, the leak persists, and the company’s track record raises questions about its commitment to environmental responsibility. Meanwhile, the Australian Energy Market Operator warns of impending gas shortfalls in Victoria and NSW by 2029, as legacy fields deplete faster than new projects can replace them. This has led to a push for more offshore exploration, with new areas of the Otway Basin recently opened for drilling—a move that has environmentalists concerned about further methane leaks and climate impacts.
As households increasingly switch from gas to electric alternatives, driven by government incentives and policies, the demand for gas is projected to drop by 30% over the next decade. But is this transition happening fast enough to offset the supply crunch? And should we be opening more areas for gas exploration when existing infrastructure is already failing us?
What do you think? Is Seven Group’s inaction a symptom of a larger problem in the offshore oil and gas industry? Should regulators take a harder line on non-compliance? Share your thoughts in the comments—this is a conversation we can’t afford to ignore.
