Through the Keep WA Gas in WA campaign, which ran in May and June 2024, the DomGas Alliance helped secure a strengthened domestic gas policy to ensure a secure and affordable gas supply for Western Australians. The Alliance supports the policy's interim allowance of 20% onshore exports to fast-track new projects, provided the domestic market remains the priority post-2030 and the door to exports is firmly closed. We commend the State Government’s commitment to enforce domestic obligations and emphasise that bipartisan support is essential to deliver certainty and stability for all market participants, safeguarding WA jobs and energy security. Read more here.
Why is domestic gas important for WA?
A secure and affordable gas supply is critical for Western Australia and underpins jobs, investment, and economic growth in the State.
Gas used in the domestic market sustains more than 400,000 jobs in the industrial, mining and manufacturing sectors and creates seven times more economic actvity in Western Australia than gas exported.
Achieving net-zero emissions by 2050 is impossible without natural gas, it plays a crucial role in Western Australia’s energy mix, enabling more renewables to be deployed.
As a cleaner alternative, natural gas is essential in reducing carbon emissions and providing reliable energy. Its flexibility and efficiency make it the perfect partner for renewable energy sources, ensuring a stable and sustainable energy future for all Australians.
By ensuring a secure and affordable supply of natural gas, we're paving the way for a greener, more sustainable tomorrow.
What is the current policy for domestic gas?
Western Australia’s long standing Domestic Gas Policy was recently updated, allowing new onshore gas projects to export up to 20% of their production until 2030, while maintaining a 15% reservation for offshore LNG projects. The changes aim to stimulate onshore development and address projected gas supply shortfalls, making sure that Western Australians can access a reliable and affordable domestic gas supply. Read more here.
What are the threats to domestic gas?
In June 2023, the Economics and Industry Standing Committee of the WA Legislative Assembly launched an inquiry into the WA Domestic Gas Policy, focusing on whether it effectively ensured timely domestic gas delivery and market transparency around supply and pricing. Concerns, led by the DomGas Alliance, centered on the policy’s failure to enforce the 15% gas reservation for the domestic market, posing a threat to local supply.
Some producers advocated for lifting the onshore gas export ban, arguing it would boost domestic supply. However, the DomGas Alliance opposed this, pointing to strong domestic demand and sufficient co-investment in new gas projects. They also highlighted the unique geological challenges of the Perth Basin, which make aggregating export volumes difficult within WA’s necessary timeframes.
In August 2024, the Committee released its final report, and the WA government responded on 19 September 2024, allowing new onshore developments to export up to 20% of their production as LNG until December 31, 2030. From 2031 onward, all gas production from these projects must be reserved for the domestic market.
The DomGas Alliance welcomed these changes, but emphasised the need for rapid development of Perth Basin projects to meet domestic demand in step with any exports. The Alliance called for bipartisan support to ensure the policy remains fixed, stating, “The Government must make it absolutely clear that this policy is now set in stone, with no future reviews or amendments. We need bipartisan support to ensure the industry can move forward without the uncertainty of further reviews.”
What can we learn from the east coast?
Since 2015, when onshore gas exports began, the east coast of Australia has faced a gas crisis.
This has caused domestic gas prices to rise, manufacturing production and employment to fall, and greenhouse gas emissions to grow, as they had to rely more on coal fired power stations.
The case of the east coast demonstrates the adverse effects that not prioritising a secure, affordable domestic gas supply would have on Western Australia.
What do Western Australians think?
A state-wide poll of 750 West Australians commissioned by the DomGas Alliance shows a resounding 87% of Western Australians believe the Government should maintain the current policy reserving 100% of onshore and 15% of offshore gas for domestic use.
This shows that Western Australians value their domestic gas and want to keep it in WA.
