WA opens narrow window for onshore gas exports

The Western Australian government has announced changes to its domestic gas policy, allowing onshore gas producers to export 20% of their gas output to international markets for the next five years, aiming to attract more investment and prevent domestic supply shortfalls.

This decision comes in light of concerns about a domestic gas shortfall post-2030, with Premier Roger Cook urging producers to accelerate production before the exemption expires in 2031.

While the Waitsia gas project remains the only onshore venture currently permitted to export, the new policy is designed to incentivise more producers to bring reserves into production.

However, some analysts are skeptical that this will significantly boost exploration and development.

The announcement follows a year-long review of WA's domestic gas reservation policy, which found that offshore producers, including Woodside, have not been meeting their obligations to supply 15% of gas to the local market.

While there were earlier suggestions of stricter regulations on offshore producers, Premier Cook acknowledged that drastic changes could deter future investment in the state. Instead, Woodside has assured the government it will increase its domestic gas supply, with yearly reports set to track companies' contributions.

Meanwhile, domestic gas buyers in WA are anticipating that Perth Basin producers will hasten the development of their projects to take advantage of the export window, while also supplying the domestic market. The Alliance has also called for the government to make it clear the policy is now set in stone and will not be changed, in contrast to calls from Australian Energy Producers for it to be reviewed after five years.

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