- WA's
Domestic Gas Policy updated to secure a strong economic future for the State
- 80
per cent of onshore gas production reserved for domestic use until 2030, to
facilitate new project development
- 100
per cent of onshore gas production reserved for domestic use from 2031
- WA's
landmark 15 per cent offshore reservation policy to continue
- Stronger
application of "use it or lose it" provisions for onshore gas licenses
- Measures
to support affordable energy, local jobs and WA's economy, as WA transitions to
a clean energy future
The Cook Labor Government
is taking action to deliver energy security and a strong economy as the State
transitions to a clean energy future, today releasing an update to the State's
landmark Domestic Gas Policy to encourage new onshore gas development.
Under the updated
Domestic Gas Policy, onshore gas projects will be required to reserve 80 per
cent of gas production for WA domestic use up until 31 December 2030, after
which projects will be required to reserve 100 per cent for the local market.
Allowing new gas projects
to export a reasonable proportion of production over the next five years will
help to stimulate development while WA's gas market is balanced, and ensure
more gas is brought to market in decades to come – helping WA to continue its
transition to renewable energy, backed by gas as a firming fuel.
The revised policy will
apply to new onshore gas projects or existing projects seeking to expand
production. An exemption will remain in place for the 'first-mover' in the
Canning Basin, to encourage development in the State's north.
The Waitsia project will
retain its domestic gas reservation obligations and export permit, issued under
the 2020 COVID-19 exemption, however the State will consider options to facilitate
other gas producers to share their infrastructure – providing faster access to
market for new projects.
WA's successful 15 per
cent reservation for offshore LNG projects remains unchanged.
To further accelerate
onshore gas developments, the Cook Government has also committed to strengthening
use of 'use it or lose it' provisions in the Petroleum and Geothermal Energy Resources Act 1967.
This change will help to prevent land banking of onshore
petroleum tenements and ensure more gas is brought to market over the coming
decade.
The Department of Energy, Mines, Industry Regulation and
Safety will conduct a review of the legislation to determine how best the
strengthened 'use it or lose it' policy can be implemented.
The Cook Government will
also deliver more transparency around the Domestic Gas Policy, having worked
with industry to publish an annual WA Domestic Gas Statement – showing how gas
producers are meeting their domestic gas obligations.
The effectiveness of the
WA Domestic Gas Statement will be reviewed after 24 months, with the Government
to consider legislating the transparency measure if required.
The update follows a
review of the policy led by the Cook Government over the past nine months,
including detailed industry consultation, and is part of the Government
response to the WA Parliament Economic and Industry Standing Committee's
Inquiry into the WA Domestic Gas Policy.
More information on the
Domestic Gas Policy and the State Government's full response to the
Parliamentary Committee's report is available at https://www.wa.gov.au/government/announcements/domestic-gas-policy-updated-secure-was-energy-future
Comments attributed
to Premier Roger Cook:
"Our gas belongs to Western Australians, and I want to make
sure we maximise the benefit to our State from our gas resources.
"As we phase out coal-fired power and transition to a
renewable energy future, WA needs a secure supply of gas as firming fuel in our
system and to help us to become a global renewable energy powerhouse.
"WA Labor's Domestic Gas Policy has underpinned WA's
economic success over the past decade, and under my Government, the policy will
set up our State for our clean energy future.
"This update provides certainty for gas producers and users,
helping to facilitate new onshore gas projects – creating local jobs while
ensuring our energy needs are met.
"The Domestic Gas Policy has been crucial to keeping WA's
gas and electricity prices among the lowest in the nation.
"Our policy supports affordable, reliable energy for WA
households and businesses into the future.
"Only our WA Labor Government can be trusted to deliver the
Domestic Gas Policy, because only our WA Labor Government will do what's right
for WA."
Comments attributed
to Mines and Petroleum Minister David Michael:
"These policy changes are sensible responses that balance
the need for Western Australia to secure its energy future while encouraging
onshore producers to bring on more gas supply as and when it is needed.
"Gas has an important role to play in our economy as we
transition to renewable energy sources and WA Labor's Domestic Gas Reservation
Policy will continue to guarantee that reliable supply.
"I look forward to the
outcomes of DEMIRS review of the Petroleum and Geothermal Energy Resources Act 1967 to determine how best we can
strengthen the 'use it or lose it' policy to ensure it remains fit for
purpose."
