EnergyQuest says WA gas market is in the calm before a storm

Western Australia’s gas market is facing a potential supply crisis by 2030, according to new research from EnergyQuest. The state could struggle to meet its gas demand due to a structural issue, similar to what has already impacted Australia's east coast.

EnergyQuest CEO Rick Wilkinson warned that WA needs to find new gas supplies, reduce demand, or rely on LNG export projects to prevent a severe shortage. The east coast market has already faced skyrocketing prices and a predicted shortfall that could occur even earlier than expected. Wilkinson pointed out that WA would be particularly vulnerable due to its reliance on gas for power as coal plants are phased out and diesel is replaced in mining operations.

To avoid this looming crisis, Wilkinson believes WA needs to develop projects such as Woodside Energy’s Browse development or enforce stricter local gas reservation policies. However, EnergyQuest expressed scepticism about the likelihood of new projects filling the gap, citing technical, economic, and environmental challenges.

While Woodside’s Scarborough project and increased production from the Perth Basin could ease some of the pressure, delays and legal challenges pose significant risks.

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