Australia announced Tuesday new offshore gas exploration licenses for its east coast and west coast markets, in an effort to ease concerns about long-term supply shortages as the country rapidly moves away from its dependency on coal-fired electricity stations.

Gas is a key element of Australia's transition to cleaner energy. The centre-left Labor Government in May backed long-term drilling for gas, despite plans to achieve net-zero emissions by 2050.

Gas will be required to support renewable energy production and to provide a backup for peak energy periods, said Resources Minister Madeleine King in a press release.

When a stable source, like energy storage or gas-fired power plants, is used to back up intermittent weather-dependent resources, such a solar and wind, they are considered more reliable.

Greenpeace Australia has criticised the decision to provide 10 permits for the assessment of carbon capture and storage. They called it "a step backwards" in terms of emission reductions.

Environmental groups claim that CCS is not yet effective and will prolong fossil fuel use.

The move by the government comes after Australia’s competition regulator warned earlier this month that gas shortages could occur on Australia’s east coast as early as 2027. This is a year sooner than originally forecast.

Australia produces more than enough gas to meet domestic demand, but the majority of its supply is contracted for international export.

King announced that exploration permits would be granted to Exxon Mobil Esso, Beach Energy, Japan's Inpex Corp, Melbana, and Woodside on the east coast.

Gas will be sold on the domestic market.

King stated that the permits did not allow for new production, but the safety and environmental approvals had to be given by industry regulator.

King stated that companies would be required to use the existing data and not conduct any new seismic surveys. (Reporting and editing by Michael Perry in Sydney, Renju Jose is reporting from Sydney)