The WA Domestic Gas Policy has for many years secured the State’s long-term energy needs and ongoing economic development by ensuring that LNG export project developers also make gas equivalent to 15 per cent of exports available to the domestic market. Recently, however, the WA Government announced the 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, and gas used to power ships will not be considered domestic gas.

Premier Mark McGowan said the updated policy will ensure the state can continue to access reliable and affordable gas.

“These amendments ensure the policy remains fit for purpose by clarifying that the State Government will not agree to exports of local gas to the Eastern States or overseas.”

“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.

The State Government has given in-principle support to allow the Waitsia project in the Mid-West to fill available capacity at the Karratha Gas Plant and export some of its gas as LNG for a short period of time.

Mr McGowan said the arrangement helps ensure the Waitsia Gas Project Stage 2 proceeds to construction. The project will create 200 construction jobs and deliver large volumes of gas into the WA market.

“The Waitsia Gas Project Stage 2 in the Mid-West is an exception to the policy. Once sanctioned, it will provide urgently needed jobs, royalties and economic stimulus for the region and the State.”

Furthermore, 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.

An estimated 90 per cent of Australia’s recoverable gas reserves are located 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 tightened policy also includes greater transparency and increased reporting so that industry knows who is supplying gas and how much is available in the market.

“For the domestic gas policy to work, the market also needs to know how much gas is available to it, and when the gas is available. We’ve listened to WA industry’s calls for this transparency and the amended policy will ensure it happens.