Premier Alan Carpenter has welcomed Woodside Energy’s decision to commit to the Western Australian Government’s domestic gas reservation policy.
The Board of Woodside confirmed the arrangement when announcing today’s $1.4billion investment in the Pluto Liquefied Natural Gas (LNG) development off the Pilbara coast of WA.
The domestic gas deal was finalised late last week in an exchange of letters between the Premier and Woodside’s managing director and chief executive officer, Don Voelte.
“Securing natural gas reserves for WA consumers is critical to our State’s long-term economic future,” Mr Carpenter said.
“I thank Mr Voelte for his support on this very important matter and welcome Woodside’s investment in another exciting new gas development off WA.”
Under the terms of the Pluto domestic gas arrangement, Woodside has agreed to market and sell the equivalent of 15 per cent of the project’s produced LNG to the WA energy market, providing it is commercially viable. Woodside and the State will negotiate in good faith an appropriate test of commercial viability. The commencement date of the commitment will occur five years after the date LNG is first exported from Pluto, or the date on which the 30-millionth tonne of LNG produced at the Pluto site is exported.
“I fully support and promote the LNG export industry and what this deal has demonstrated is that gas producers can reserve gas for both export and domestic use,” the Premier said.
“It also demonstrates that the State’s 15 per cent domestic gas reservation policy is realistic and achievable.”
Mr Carpenter said the Pluto development was another major project for WA that was expected to directly create 2,500 jobs during construction, more than 3,000 permanent and indirect jobs when operating and a $28billion boost to the economy.
Woodside is due to make its final investment decision by the middle of next year on the project - which is estimated to cost between $6billion and $10billion.
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