Western Australia to be Flexible on Gas Reservation

The Western Australian government will maintain a domestic gas reservation requirement for all gas projects in the state.

While the policy implies producers set aside 15% of their gas reserves for domestic use, preventing them from exporting it to more lucrative markets overseas, Premier Colin Barnett stressed a flexible approach to explore avenues for implementation and assess the commercial viability of a project.

“This flexibility will be retained unless an independent study can show that a stricter approach would be more effective,” he said.

The authorities, he said, have approached the federal government to include a domestic gas supply requirement in the conditions for granting or renewing offshore petroleum leases in Commonwealth waters.

The government has already been developing more reliable gas demand and supply forecasts and working with operators of liquefied natural gas projects to secure assurances about future supply and timelines, he said.

The decision for reservation was part of the government’s formal response to the recommendations of the Economics and Industry Standing Committee’s Inquiry into Domestic Gas Prices.