The Western Australian Government's changes to the state's domestic gas policy give companies more opportunities to export gas and further reduce domestic gas supply, said The Australia Institute.
Key Findings:
- Exports of gas are threatening the stability of WA's gas market.
- The policy changes announced today allow more of WA's domestic onshore gas to be exported, not less.
- The cause of the problem is Woodside's North West Shelf Extension proposal, which has not identified supply sufficient for its export capacity.
- "The barbarians are at the gates of the WA domestic gas market and the WA Government is throwing them the keys," said Rod Campbell, Research Director at The Australia Institute.
"Today's changes to the WA domestic gas policy allow more of WA's domestic onshore gas to be exported. Onshore gas that had been set aside for the domestic market is now allowed to be exported.
"This benefits Woodside, which is desperate to take more gas for its North West Shelf Extension export facility. It also benefits gas companies that would rather sell WA's domestic onshore gas to Woodside than Western Australians.
"This is a disaster for Western Australian gas users because it more closely links the domestic market and the export market.
"This is the east coast gas policy mess all over again.
"If anything, this is worse than the east coast because more WA gas (over 50%) is given away royalty-free and no gas exporters have ever paid Petroleum Resource Rent Tax.
"If the WA Government is serious about the best interests of the community, it will reject Woodside's North West Shelf Extension, which is the prime cause of these problems.
"Reducing gas exports and reducing WA's own use of gas would be the most responsible path, both economically and environmentally."
