Gas crisis: WA opens six-year window for onshore gas exports, stricter obligations on Woodside Energy to supply domestic market

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The Cook government’s revised policy may not be enough to achieve the aims of encouraging more gas exploration and development, some commentators say.

Already a subscriber?The West Australian government will allow onshore gas producers to export a portion of their output to international markets to boost investment in the sector and prevent future domestic shortfalls, but has stopped short of imposing tougher measures on offshore producers.

But on Thursday, Mr Cook said making any substantive changes to their operations would prove too risky. Major WA domestic gas buyers said they now expected producers in the Perth Basin to accelerate the development of their projects to take advantage of the six-year window for exports.“We expect Perth Basin producers to now fast-track development of their projects, offering gas to the domestic market in absolute lock step with any exports,” said Richard Harris, spokesman for the DomGas Alliance, which includes major manufacturers such as Wesfarmers and Alcoa.

In a speech in the Northern Territory this week, Resources Minister Madeleine King said while coal, LNG and other resources had fuelled the nation for the past half century, Australia needed to invest in new commodities that would shape the future economy, including critical minerals.that onshore gas producers should be allowed to export to international buyers, but only if the industry can address a looming shortfall in domestic supplies.

But large gas consumers have warned that allowing onshore gas exports could jeopardise WA’s energy supply.that have accused the state’s LNG exporters of failing to meet their obligations under the domestic gas reservation policy. Mr Nicholls said lifting the export ban would improve the economics of Strike’s development projects that were yet to reach a final investment decision and incentivise further exploration.

 

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