An update to the State’s landmark Domestic Gas Policy has been released to encourage new onshore gas development and increase market transparency.
New onshore gas projects will be required to reserve 80% of gas production for WA domestic use up until 31 December 2030, after which these projects will be required to reserve 100% for the local market. Allowing these projects to export while the market is balanced will help to stimulate development and ensure more gas is brought to market in decades to come
WA’s successful 15% reservation for offshore LNG projects remains unchanged. A 15% reservation will also remain in place for the ‘first-mover’ in the Canning Basin, to encourage development in the State’s north.
The update follows a review of the Policy, including industry consultation and is part of the WA ºÚÁÏÕýÄÜÁ¿ response to the WA Parliament Economic and Industry Standing Committee's Inquiry into the WA Domestic Gas Policy.
More transparency around the WA Domestic Gas Policy will also be delivered to show how gas producers are meeting their domestic gas obligations through an annual WA Domestic Gas Statement. It is intended that this Statement will be updated on an annual basis. A review of this Statement will be undertaken after 2 years to consider if legislating the transparency measure is required.
The Hon. Roger Cook, Premier of Western Australia has said "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."
