Alan Carpenter

Alan Carpenter

Premier; Minister for Federal-State Relations; Trade; Innovation; Science; Public Sector Management

    State Government's domestic gas reservation policy released

    12/10/2006 11:25 AM
     
    12/10/06

    Premier Alan Carpenter today released the State Government’s domestic gas reservation policy to help secure Western Australia’s long-term energy supplies.

    The centrepiece of the policy is to set aside for domestic use the equivalent of 15 per cent of gas available from any future offshore development.

    Mr Carpenter said the 15 per cent figure reflected current estimates of future domestic gas needs, estimated gas reserves and forecast Liquefied Natural Gas export production.

    “The State Government will apply this policy as part of the negotiating process with export gas producers,” he said.

    “However, there is flexibility built into the policy to allow for each project to be negotiated on a case-by-case basis.

    “This may allow producers to trade gas from other fields or negotiate a suitable timetable for delivery of gas into the WA market.”

    The Premier said this policy was essential to the State’s long-term economic future.

    “Natural gas is now the power source for 60 per cent of our electricity generation but contracted gas supplies from our North West Shelf are due to expire in 10 to 15 years’ time,” he said.

    “We need to act now to ensure we have access to gas as an energy source for many, many years ahead.

    “Domestic gas reservation has underpinned our export gas industry since its inception in the early 1980s and there is no reason why it should be abandoned.

    “It has been proven over the years that the LNG export industry can work co-operatively and effectively with the domestic gas industry.”

    Mr Carpenter thanked Department of Industry and Resources staff, gas producers and gas user groups for their co-operation during the policy development process.

    The formulation of the domestic gas policy follows the release of a discussion paper in February this year. The policy is available on the Department of Industry and Resources website: http://www.doir.wa.gov.au/domgas

    Premier's office - 9222 9475