The Western Australian domestic gas policy will be amended to prevent the export of local WA gas.
Under the updated policy, local WA gas cannot be exported to the eastern states or overseas, while gas used to power ships will not be considered domestic gas.
Following the economic circumstances created by the COVID-19 pandemic, the state government has given in-principle support to allows the Waitsia project in the Mid West to fill available capacity at the Karratha gas plant and export some of its gas as liquefied natural gas (LNG) for a short period of time.
The arrangement will also ensure stage two of the Waitsia gas project proceeds into construction, with it set to create 200 construction jobs and deliver large volumes of gas into the WA market.
In a bid to strengthen WA’s domestic gas policy to ensure security of supply, the tightened policy includes greater transparency and increased reporting so that industry knows who is supplying gas and how much is available in the market.
Premier Mark McGowan said WA’s domestic gas policy is the envy of the nation, with the updated policy ensuring the state can continue to access reliable and affordable gas.
“There will be no change to traditional LNG projects like Browse and Scarborough, where they must reserve 15 per cent of exported gas volumes for domestic use,” McGowan said.
“We’ve listened to WA industry’s calls for this transparency and the amended policy will ensure it happens. We have seen what’s happened on the east coast with local gas supplies being prioritised for export and we won’t let that happen here.”
In addition, an estimated 90 per cent of Australia’s recoverable gas reserves are in the Carnarvon and Browse basins in the North-West and support WA’s LNG export industry, as well as the state’s domestic gas market.
The WA Government is working with the LNG Jobs Taskforce to grow the gas industry, create local jobs and establish WA as a global LNG hub.