The Greens and environmental groups have condemned the federal government’s move to encourage more offshore gas exploration, describing it as an “environmental betrayal” that undermines Labor’s climate agenda.

The minister for resources, Madeleine King, this week announced five new areas in the Otway basin, stretching from waters off the south-west coast of Victoria to the ocean west of Tasmania, would be opened up for gas exploration as part of the government’s future gas strategy.

As cabinet deliberates over a major intervention into the east coast gas market, including a gas reservation, King said unlocking new supplies would help contain gas prices and avert potential shortfalls forecast for the end of the decade.

_{Sign up: AU Breaking News email}

“Exploration and new discoveries will play an important role in underpinning our energy needs and support Australian industry and households as we meet our net zero commitments,” King said in a statement.

The announcement comes just days after the Victorian government opened tenders for gas exploration in the Otway and Gippsland basins.

The Australian Greens and the Wilderness Society have sharply criticised the federal government’s move, warning the search for new gas supplies would worsen the climate crisis and endanger marine wildlife.

“Labor’s new ocean acreage handout is an environmental betrayal and an early Christmas gift to the fossil fuel companies driving the climate crisis,” the Greens’ resources spokesperson, Steph Hodgins-May, said.

The party’s oceans spokesperson, Peter Whish-Wilson, questioned how opening new gas fields squared with the transition to clean energy.

“Labor’s two-faced climate act is wearing thin,” he said.

The Wilderness Society’s fossil fuel industry campaigner, Fern Cadman, said the waters earmarked in the latest acreage release were “wholly unsuitable” for gas exploration.

“It’s deeply disturbing that while parts of our country are on fire, fuelled by climate heating and burning of fossil fuels, the Albanese government is mindlessly paving the way for new gas drilling. Australia is meant to be on a path transitioning away from fossil fuels, not opening the door to brand new gas,” Cadman said.

King said the five new areas – all in commonwealth waters – had buffer-zones to protect marine park boundaries.

Public consultation on the five zones is open until 6 February, with applications for exploration permits closing on 30 June.

The announcement comes as the Albanese government prepares to release the findings of a six-month review of the east coast gas market, which is widely expected to recommend establishing a new scheme to force producers to reserve supplies for domestic use.

Cabinet ministers are also reportedly considering bulk-buying gas and selling it to businesses at discounted rates to prevent the closure of struggling manufacturers.

Ahead of the review’s release, a coalition of environmentalists, inequality advocates and clean energy groups issued a statement opposing new taxpayer subsidises for gas companies, which they said have been “allowed to plunder Australia’s public resources without accountability for too long”.

The nine organisations backed a 25% tax on gas exports, an Australian Council of Trade Unions’ policy that has been championed by the Greens.

“Australia’s focus on gas exports has tripled domestic gas and electricity prices driving up inflation and household bills,” said Australian Council of Social Service climate and energy program director Kellie Caught, whose organisation was among the nine groups.

“The government must implement gas export market controls and avoid options that effectively subsidise gas companies or incentivise new polluting gas production. It’s time for this government to prioritise people over rich gas companies.”