Premier Roger Cook ‘leans less towards’ export of onshore gas after speaking to major domestic users
Premier Roger Cook has expressed a shift in his stance on the potential export of onshore gas, stating he is now "leaning less towards the idea" after discussions with major domestic users who are willing to pay a premium for the energy source. The current policy in Western Australia prohibits exporting onshore gas, ensuring sufficient local supply. However, companies like Woodside and Mineral Resources have been advocating for a change to boost the commercial viability of new projects. After six months of consultation, Mr. Cook is expected to announce his decision later this year.
In a recent budget estimates session, Mr. Cook acknowledged considering a policy shift but emphasized the need to evaluate its impact on the domestic market's commercial viability. He mentioned engaging with customers who believe there is strong demand and a willingness to pay reasonable prices for the gas. To inform the decision, the government has employed a gas market expert and an external consultant to conduct a comprehensive commercial analysis of onshore gas projects. Mr. Cook highlighted the differing opinions within the industry about the necessity of export permissions for new investments and stressed the importance of understanding the economics before making any changes.
During the Australian Energy Producers conference, Mr. Cook reiterated the importance of thoroughly testing the proposition that access to overseas customers is essential for new projects. He emphasized the need for a detailed conversation with both producers and customers in the domestic gas industry. The Waitsia project was previously granted an exemption to export half its gas, and Beach Energy and Mitsui are now building their own processing facility. Mr. Cook noted the potential for other companies to utilize this facility, fostering economies of scale and resource sharing within the Perth Basin. This collaborative approach could streamline investment and development in the region.