Parliamentary committee publishes report into WA’s domestic gas policy - MASHAHER

The domestic gas inquiry has seen WA’s resources sector, which is normally united on what it wants from the WA government, divided between gas producers and consumers.

Caroline Cherry, WA director of oil and gas lobby group AEP, said her members had responded to concerns recently and increased the supply of gas to the market.

The report acknowledged this, but added, “WA cannot rely on sporadic appeals for more gas when the market appears to be tightly balanced.”

Cherry also opposed companies losing petroleum permits they were not producing from, and any renegotiation of current agreements with the government. She argued restrictions on exporting gas from onshore fields would make the projects less profitable, so less likely to proceed.

Yara energy manager Jai Coppen said some gas producers had not adhered to their agreement with the state, and the government should move quickly to overhaul arrangements.

The committee highlighted the poor performance of Woodside’s Pluto project, from which supply so far to WA is equivalent to about 2 per cent of the gas exported, not the 15 per cent expected, and recommended the government renegotiate the deal with Woodside.

The inquiry found “non-compliance with domestic gas commitment agreements is a serious threat to the state’s current and prospective performance.”

The committee also wants the domestic gas obligation for future projects to be set at whatever WA requires to be adequately supplied, not the standard 15 per cent in the current policy developed on 2006.

Current forecasts of the WA gas market extend out ten years, but the committee wants 20-year outlooks produced to help industry make investment decisions.

WA Greens upper house member Brad Pettitt said the inquiry failed to recognise the urgent need to decarbonise, and exaggerated the demand for gas over the next decade if emissions targets were to be met.

“The WA government should be putting in place policy and targets to drive down and phase out the use of gas in the domestic market in line with emissions reduction goals,” he said.

“We have the sun, wind and mineral resources to do this.”

Source Agencies