The introduction of the National Domestic Gas Reservation Bill 2026 to Federal Parliament is an important opportunity to ensure Western Australian gas users have a voice in assessing whether the State's domestic gas reservation policy is delivering for local industry, the DomGas Alliance says.
The DomGas Alliance is a member-driven industry body representing gas users in Western Australia, with its members accounting for approximately 60 per cent of the gas consumed in the State.
Under the federal legislation, the Minister has the power to vary the gas reservation amount between 0 and 20 percent. Where existing State-based gas reservation arrangements, such as Western Australia's, are in place, the Commonwealth must consult with the relevant State government before any variation is made.
The Alliance said decisions about domestic gas supply should not be based on government assessments alone but should include evidence from the businesses that buy and rely on gas every day.
DomGas Alliance spokesperson Mia Davies said gas users must be central to any assessment of the Western Australian market.
"Consultation with the WA Government before domestic supply obligations are decided for WA-based producers should be informed by evidence of what is actually happening in the market, not simply by the existence of a reservation policy," Ms Davies said.
"Gas supply is critical to powering WA’s economy. A market that is well supplied gives gas users the ability to negotiate contracts and make long-term investment decisions with confidence.
"Through its recognition of existing State arrangements, the legislation creates the opportunity to assess how WA’s scheme is actually performing in practice.
“When the Domestic Supply Obligation for WA-based producers are varied, the experience of gas users should be front and centre.
“Any assessment that WA is adequately supplied must go beyond the existence of a reservation policy and consider the gas actually being delivered to the local market and the experience of businesses seeking to secure supply.”
The WA reservation scheme has delivered only 8 percent reserved supply for the WA market, below the intended 15 percent benchmark. This underperformance is even more evident at the project level, where Woodside's Pluto project has supplied only 3.7 percent.
Analysis commissioned by the Alliance found that in 2024-25, around $8.1 billion of domestic gas was used by industries accounting for $432.2 billion in economic activity and more than 460,000 full-time equivalent jobs, representing more than half of WA's total economic activity.
