DomGas Alliance says punters back State Government’s onshore export ban
The DomGas Alliance, is urging the State Government not to lift the export ban on onshore gas production. This comes as Premier Roger Cook considers revising the regulations during a Parliamentary Inquiry into the local gas market, which is facing a predicted shortage of up to 27% in the next decade according to the Australian Energy Market Operator.
The Alliance has submitted new evidence to the inquiry, arguing that onshore gas can be extracted profitably for $3 to $6 per gigajoule without needing to export. They highlight recent reserve downgrades by Beach Energy and Strike Energy and argue that the Perth Basin, with its smaller reserves, isn’t suitable for export and would require pooling of fields to achieve the scale needed for LNG.
Currently, offshore gas can be mostly exported, reserving only 15% for local use, whereas onshore gas connected to the state's pipeline must be entirely reserved for domestic use. There's increasing scrutiny over whether large LNG exporters are fulfilling their commitments to supply the local market.
A survey by Utting Research found that 84% of participants were concerned that oil and gas companies might be exploiting vague terms to shirk their local supply obligations, and nearly two-thirds believe that allowing onshore gas exports would hike household bills.
On the other hand, onshore producers argue that access to international markets is essential for the economic viability of their projects. DomGas Alliance chair Richard Harris contends that permitting exports from onshore fields would undermine the state’s industrial base and future economic growth, and could jeopardize the energy transition as the state plans to phase out coal-fired plants in six years to support renewable energy integration.