Skip to main content
;

Domestic gas supports more than half the state's economy

Excavator loading a dump truck at a construction site, with wind turbines visible on the horizon and a clear blue sky.

New ACIL Allen analysis for the DomGas Alliance shows WA industries that use domestic gas support $432.2 billion in economic activity and more than 460,000 jobs, equivalent to 52.1 per cent of total economic activity in Western Australia.

That value is generated across mining, manufacturing, mineral processing, utilities, construction and transport, industries that use domestic gas to keep operations running, process WA resources and turn them into higher-value products. In 2024-25, WA businesses purchased $8.1 billion of domestic gas, including around $3 billion by the mining sector alone.

The analysis found that LNG exports generated $64.6 billion in export income in 2024-25. 

The State relies on the WA Domestic Gas Policy to ensure the value of the resource does not end at the export terminal. LNG exporters are required to reserve gas equivalent to 15 percent of their exports for the WA market and make that gas available to local customers, ensuring the State captures value from its gas both offshore and here at home.

WA earned $64.6 billion from LNG exports last year, while industries relying on domestic gas supported more than $432 billion in economic activity, almost seven times the value of those exports.

When exporters fall short on domestic commitments, it is WA industry that carries the risk - the analysis shows just how much of the State’s economy depends on getting that supply right.

The DomGas Alliance said the findings reinforced the need to strengthen and enforce WA’s Domestic Gas Policy and make clear that LNG producers must honour the obligations that underpin their access to lucrative export markets.

Attributable to DomGas Alliance Spokesperson Mia Davies:

“This analysis shows just how important domestic gas is to the WA economy.

“Industries that rely on domestic gas are responsible for more than half of WA’s economic activity.

“Domestic gas allows WA to do more with the resources we have, it keeps mines operating, manufacturers producing, mineral processors adding value, businesses investing and Western Australians in work.

“But that economic value depends on industry having access to reliable, secure and affordable gas.

“That's why alarm bells should be ringing for Government and businesses alike - we have forecast supply shortfalls, major projects behind on domestic commitments and too little transparency around whether obligations are being met.

“A 2024 Parliamentary Inquiry identified where the WA Domestic Gas Policy needs to be strengthened. Those recommendations need to be acted on, the policy needs to be properly enforced, and LNG producers need to honour the commitments they made in return for access to export markets.

“If they do not, it is Western Australian industry, workers and the broader community that are short-changed.

“WA’s gas should deliver value offshore and here at home, and that means making sure the Domestic Gas Policy actually delivers the gas WA industry was promised.”

Quick facts:

  • $432.2 billion in economic activity supported by industries that rely on domestic gas.

  • 460,089 full-time equivalent jobs supported by those industries.

  • $8.1 billion of domestic gas purchased by WA industry in 2024-25, including $3 billion by mining.

  • $64.6 billion - LNG export income generated in 2024-25, up 34.1% since 2021-22

  • Domestic gas purchases have increased by $3.8 billion (88.7%) since 2021-22, driven largely by mining, manufacturing and mineral processing.

;
Domestic gas supports more than half the state's economy - DomGas Alliance