Gas Supplies to Be Cut Off to 10 Victorian Towns

More than 1,100 people will be impacted.

Blue flames from a gas at a home in Arlington, Va., on May 3, 2023. Olivier Douliery/AFP via Getty Images

Gas will be cut off ten regional towns in the Australian state of Victoria due to the increasing costs, impacting more than 1,100 people.

The news comes amid the Victorian government’s electrification plan, including a long-term shift away from natural gas.

Solstice Energy will cut off the gas networks in 2026 to these towns and assist them in converting to other forms of energy.

“The gas networks in 10 regional Victorian towns will be shut down by mid to late 2026 because it’s become too expensive,” Solstice told customers.

“We will help our customers switch to a cheaper energy supply—bottled LPG or electricity. This change will save them money and we’ll support them to make this change happen.”

Minister for Energy and Resources Lily D’Ambrosio spoke with Solstice Energy and assured Victorians they would assist with the conversion to electricity.

“After several conversations with Solstice Energy, the company will provide up front payments to help these families transition to electricity or LPG. For those switching to electricity, we’re providing up to thousands in discounts through Solar Homes and the Victorian Energy Upgrades.”

Residents and businesses impacted by the change include those in the towns of Heathcote, Terang, Swan Hill, Marong, Lakes Entrance, Orbost, Nathalia, Maldon, Robinvale, and Kerang.

Shadow Minister for Energy David Davis blamed the decision on Labor’s “anti-gas policies” creating a “hostile investment environment” in Victoria.

“This is the cost of Labor’s anti-gas dogma. Businesses are pulling the pin because of the ideological war being waged against gas in Victoria,” Davis said.

“Families and small businesses will be left high and dry, forced into expensive electrification processes many simply can’t afford.”

Nationals Leader Danny O’Brien added, “Removing energy options for regional communities costs households at a time of a cost-of-living crisis and reduces the economic development opportunities in these areas.”

Victoria’s gas supply plan, released in June 2025 requires all new homes to be built electric from Jan. 1, 2027. Gas hot water systems also need to be replaced with an electric alternative like a heat pump from March 2027.

Victorian Opposition Leader Brad Battin reiterated his promise to end the “gas ban.”

“Under Labor your energy bills are increasing. Labor’s gas ban is a big reason why. Reminder: The Liberals and Nationals are committed to overturning the gas ban, lifting the moratorium on exploration, and restoring energy choice for Victorian households and businesses,” Battin said on X on Aug. 5.

Meanwhile, Marong Community Action Group said on Facebook the decision from Solstice Energy would have “big consequences” for their community.

Solstice Energy Explains the Situation

In a statement provided to The Epoch Times, a Solstice Energy spokesperson explained the cost of supplying compressed natural gas was continuing to go up. 

“Solstice Energy is starting a supported and planned process of switching customers to bottled LPG ahead of a closure of the ten small compressed natural gas (CNG) networks in regional Victoria next year, which currently service about 1,100 customers across 10 regional towns,” the spokesman said. 

The spokesman explained that, unlike other gas networks, the CNG networks relied on gas being compressed and trucked across the state.

“Over the past few years, there have been constant increases in the cost of supplying these regional CNG networks. We have been absorbing costs wherever possible, but this is no longer viable for our customers, or our business,” Solstice Energy explained. 

Solstice said they wanted to find a better option for their customers.

“Rather than continuing to raise prices in the future, we are instead supporting our customers’ switch to bottled LPG or electricity, and then closing the CNG networks by the end of 2026,” the company said. 

The spokesperson said customers could continue to use their existing gas heaters and cooktops, with Solstice Energy helping and coordinating the switch to bottled LPG. Solstice Energy said it could assist with some of the costs if customers chose to switch to electric appliances.

“We understand the immediate price increases may be difficult to absorb for some customers prior to the change, and we will work closely with any customers experiencing financial difficulties,” the company told the Epoch Times.