The Western Australian Government will make amendments to the WA Domestic Gas Policy to prevent the export of local WA gas.

Until now, the Policy has ensured that LNG export project developers make gas equivalent to 15 per cent of exports available to the domestic market. However, 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.

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.

Premier Mark McGowan said 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.”

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.

The Government has stated that the reason behind this is to help ensure the Waitsia Gas Project Stage 2 proceeds to construction.

“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,” Mr McGowan said.

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.