Western Australia’s domestic energy security is set to improve under significant changes to the state’s gas policy regime, aimed at unlocking new supply and ensuring reliable energy for the region, as revealed in a news release.
The Australian Energy Producers (AEP) praised the WA Government’s response to the WA Domestic Gas Policy Inquiry, describing it as a “sensible” approach that will enhance the affordability and reliability of energy for both households and businesses.
Caroline Cherry, WA director of the AEP, highlighted the importance of the new framework announced by the government.
“The Cook Government has listened to the concerns of industry about ensuring reliable and affordable energy for the state and pulled the levers to bring on more new gas supply to serve rising demand for gas in coming years,” she said.
One key element of the policy change is the decision to allow onshore gas production for export, which the sector had been advocating.
This move is expected to make more projects viable and bolster the domestic supply, particularly as the state looks to phase out coal.
Cherry explained, “More gas will be needed to serve rising demand supporting renewables in electricity generation as coal is phased out, while underpinning the economic benefits produced by the mining sector as a key power source.”
The transparency measures included in the new framework are also a major step forward. These measures will show how gas producers are meeting their domestic gas obligations, providing stakeholders with valuable insights.
Cherry emphasised, “This was a key policy area the industry wanted to improve and our constructive work with the government will deliver greater transparency for the market.”
Cherry further suggested that a review of domestic market supply in a few years would be essential to ensure ongoing investment in gas developments and access to export markets.
“The Government has again shown it understands the importance of new gas development and how to extract the economic benefits of this cleaner fuel on the journey to net zero,” she said.
The changes come as WA continues to rely on gas as a key energy source for its economy, particularly in the mining sector.
According to Cherry, “Exports deliver important economic benefits for WA and also support the domestic energy security the state has enjoyed for decades because of the industry’s commitment to providing energy for this region.”
She concluded, “Some of the state’s biggest economic driving projects are being established by the oil and gas industry, and our members are committed to working with the government to get the best outcome for West Australians.”
