A recent parliamentary inquiry into Western Australia’s domestic gas policy has revealed that the state’s gas industry is effectively fulfilling domestic supply requirements at stable prices.
The Economics and Industry Standing Committee’s Final Report on the WA Domestic Gas Policy highlighted the importance of securing additional gas sources in the coming years.
The report recommended that the state government should allow onshore gas projects to export LNG only if the domestic market remains adequately supplied, ensuring that the state’s energy needs are met for the foreseeable future.
Australian Energy Producers (AEP) responded positively to the report, expressing their willingness to collaborate with the WA Government to achieve the best outcomes for the state.
While the report proposed some government interventions that the industry considers potentially counterproductive, AEP said it welcomed the committee’s preference for market-led solutions.
The inquiry noted that Western Australia has so far avoided the significant supply shortfalls and price volatility experienced on Australia’s east coast.
The report highlighted that, despite tightening demand, recent commitments by gas companies have ensured a steady supply to the domestic market.
AEP WA Director Caroline Cherry emphasised that gas companies have consistently met their domestic gas commitment agreements, providing reliable and affordable energy to support WA’s economy.
“Gas companies are committed to producing reliable and affordable energy supply, and the report has found they have delivered this for WA’s economy,” Cherry stated.
“As the committee acknowledges, industry has further demonstrated this commitment in recent months, with several companies ensuring extra supply to the domestic market.”
Cherry also pointed out that allowing onshore projects to access export markets could enhance domestic gas security by making more projects commercially viable.
However, she cautioned against recommendations that could introduce instability, such as renegotiating existing domestic gas agreements and implementing a ‘use it or lose it’ policy for retention leases.
“Any changes to the DGP objectives, as proposed, should be tested with stakeholders,” she said, advocating for a balanced approach to ensure continued investment in new gas supply.
