LNG, Markets, Offshore, Projects

DomGas protects domestic gas needs for WA

DomGas Chairman Stuart Hohnen has called for immediate action to implement a 2050 Gas Securtiy Strategy.

“The availability and affordability of gas supply for industry and power generation is the most critical challenge facing Western Australia today,”? Mr Hohnen said.

“Failure to address this will have profoundly negative impacts on jobs, investment and living standards in Western Australia.”?

Mr Hohnen said the report, Western Australia’s domestic gas security, provides a clear way forward for meeting Western Australia’s future energy needs.

Key initiatives for a 2050 Gas Security Strategy include:

  • Stringent review and transparency of gas producer applications to hold discoveries under retention leases;
  • Removing anti-competitive joint selling arrangements under which major gas producers operate under cartel type arrangements whereas consumers are prevented from doing likewise;
  • Tax, royalty and investment incentives to encourage exploration and development of fields for domestic gas supply;
  • Domestic gas reservation policies to set aside a fixed proportion of gas production for supply to the domestic market;
  • Common-use midstream infrastructure; and,
  • Tight gas development.

DomGas said that Western Australia is the most energy and gas-dependent economy in Australia. Natural gas supplies half of the state’s primary energy requirements and fuels 60 per cent of the state’s electricity generation, while for Australia as a whole, natural gas only makes up 19 per cent.

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