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Nickel miners’ pain is gas market’s gain, says Woodside

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Gas giant Woodside says Alcoa’s move to shutter a major WA alumina refinery paired with the state’s struggling nickel sector could create allay domestic gas supply concerns.

Woodside says Western Australia’s faltering nickel industry and the closure of Alcoa’s Kwinana alumina facility will allay some domestic gas shortfall concerns, with demand easing by up to 10 per cent in the state., Woodside executive Mark Abbotsford said on Wednesday that local demand had fallen since the energy market operator warned of a looming shortfall last year.“We actually see a demand-side effect that has reduced that.

Mr Abbotsford, Woodside’s executive vice president of marketing and trading, said the company was even dealing with one unnamed iron ore miner reducing their demand by 20 terajoules per day due to an “ongoing dispute” in relation to tenements.“The significance of the items I just raised in terms of a demand side effect are not immaterial; they’re up to around 10 per cent of the WA market could be impacted in the short term,” he said.

Labor MP and inquiry chair Peter Tinley cited concerns Pluto would not “live up” to its requirement to sell 15 per cent of the gas it produces into the domestic market.“Picking up the shortfall of 15 per cent at Pluto through other distributions, is that something that actually occupies your mind much, the capacity to actually bring the molecules from somewhere else?,” Mr Tinley asked.

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