The Western Australian government has announced significant changes to its gas policy regime, aimed at enhancing domestic energy security and unlocking new supply.
The reforms, which come in response to the WA Domestic Gas Policy Inquiry, have been welcomed by industry leaders as a sensible approach to ensuring affordable and reliable energy for homes and businesses across the state.
Australian Energy Producers has praised the government’s decision to open up onshore production for export, saying it is expected to make more projects economically viable while underpinning domestic supply.
Caroline Cherry, WA Director of Australian Energy Producers said: “The government has listened to the industry and taken steps to bring on more new gas supply to meet rising demand in coming years.”
The reforms are particularly timely as Western Australia faces increasing energy needs.
Cherry explained: “More gas will be needed to support renewables in electricity generation as coal is phased out, while also underpinning the economic benefits produced by the mining sector as a key power source.”
A key feature of the new policy framework is improved transparency.
The government has announced measures to better demonstrate how gas producers are meeting their domestic gas obligations.
This increased transparency is expected to benefit stakeholders, including customers, by providing clearer insights into market dynamics.
The policy changes also recognise the dual importance of exports and domestic supply.
“Exports deliver important economic benefits for WA and also support the domestic energy security the state has enjoyed for decades,” Cherry noted.
Looking ahead, the industry has called for a review in the coming years to assess the adequacy of domestic market supply.
This would help ensure continued appropriate investment signals for new gas developments and access to export markets.
The reforms represent a collaborative effort between the government and the oil and gas industry.
Cherry emphasised the industry’s commitment to working with the government to achieve the best outcomes for West Australians, highlighting the significant economic contributions of oil and gas projects to the state.
As Western Australia continues its journey towards net-zero emissions, these policy changes are seen as a step towards balancing energy security, economic growth, and environmental considerations.
