Presenting on Monday to the Economics and Industry Standing Committee of the Parliament of Western Australia during the Inquiry into the WA Domestic Gas Policy, the DomGas Alliance highlighted the importance of policy outcomes that ensure that an affordable and secure gas supply is prioritised for the State.
Gas distributed and made available to the Western Australian market generates eight times as much domestic economic activity as gas that is exported.
Domgas Alliance Chair, Richard Harris, said that "At a time when gas shortages loom on the horizon, it is critical that our policies prioritise the 400,000 jobs and the $370 billion worth of infrastructure that depend on a reliable and affordable domestic gas supply in Western Australia."
The Alliance also highlighted the limited gas reserves in the Perth Basin, which are not large enough to support both LNG exports and domestic use and should be preserved for WA industry and households only. Further assessments in the Perth Basin suggest that ongoing exploration is leading to fewer discoveries, and reserve quantities have been downgraded casting doubt on the initially optimistic estimates.
Consequently, it is essential to exclude these areas from export options to guarantee that the gas remains available for domestic use.
"Given the limited gas reserves in the Perth Basin, which are inadequate to support both LNG exports and domestic needs, it's imperative that we preserve these resources exclusively for Western Australian industries and households,” said Mr Harris.
The DomGas Alliance also recommended that the Government enforce the title administration and permit obligations for the gas producers in the Perth Basin, ensuring that they “use it or lose it” which would mandate that dormant gas reserves, which have not been developed, be relinquished, and made available for other entities to commercialize.
“Resource management must be proactive, not passive. The 'use it or lose it' directive ensures that the value of undeveloped gas reserves is unlocked or step aside and allow others the opportunity to cultivate these dormant resources for the benefit of the State,” Mr Harris said.