South Australia’s energy future is getting another boost, with the State Government backing a new gas project that could eventually supply enough energy for up to 150,000 homes.
The State Government has announced the final funding allocation under its $17.5 million South Australian Gas Initiative, with Adelaide-based energy company Amplitude Energy receiving $2.5 million to support its East Coast Supply Project.
The funding will help expand processing capacity at the company’s Athena Gas Plant while supporting further development work aimed at bringing new gas supply into South Australia before the end of 2028.
As part of the agreement, Amplitude Energy will reserve 5 petajoules of newly produced gas specifically for South Australian customers across the first four years of production. That’s enough gas to cover the heating, hot water and cooking needs of approximately 150,000 average homes each year.
The announcement comes amid growing conversations around energy reliability and supply security, particularly following recent global instability and concerns over fuel markets linked to conflict in the Middle East.
Energy and Mining Minister Tom Koutsantonis said, “Concerns about fuel supply, triggered by the war in the Middle East, have highlighted how critical energy security is to every nation, and every state.
“It’s essential that we do everything we can to secure a diversity of energy sources, and we’re fortunate in Australia to have strong, cooperative relationships among states and territories that facilitate the exchange of energy between neighbours.”
The South Australian Gas Initiative launched in 2025, offering grants covering up to 50 per cent of project costs for developments designed to increase local gas supply and infrastructure capacity.
Projects supported through the initiative include drilling new wells in the Cooper and Otway Basins, pipeline upgrades and investigations into underground gas storage options.
According to Government estimates, projects funded under the initiative could ultimately deliver more than 20 petajoules of gas into the South Australian market, helping place downward pressure on wholesale gas prices while strengthening long-term supply reliability.
Amplitude Energy, headquartered in South Australia, has a long history supplying gas into both the local and broader east coast markets. The latest project is expected to contribute to energy security not only within SA, but across southern Australia more broadly.
While South Australia continues to lead the country in renewable energy generation, the Government says projects like this remain important for providing dispatchable backup energy and supporting stability across the grid during peak demand periods.
The East Coast Supply Project is expected to be operational before the end of 2028.
