WA government removes possibility of exporting gas produced onshore as industry figures voice disapproval

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The state government throws a spanner in the works of some of Australia's richest people, who had been racing to develop valuable gas reserves near Perth.

A spokesperson for the premier suggested it was because of that predicted shortage that the government needed to quarantine as much gas as it could for local use.

"Gas prices in WA are high, and arguably as high as the east coast at the moment, and so for those Perth basin suppliers the gas price is still attractive at this time," he said.Opposition energy spokesperson Steve Thomas agreed the potential impact of the policy shift was likely minimal. "I don't think that just reinforcing what has currently existed is going to change the marketplace or threaten the industry."

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