The DomGas Alliance says the proposed National Domestic Gas Reservation Scheme gives the opportunity for the Western Australian Government and LNG producers to address the shortcomings of Western Australia’s 15 percent domestic gas policy and ensure it delivers the outcomes it was designed to achieve for local businesses and industry.
In its submission on the proposed national scheme, the DomGas Alliance said WA’s 15 percent policy should only be recognised where the State Government and producers can show that the gas is actually being delivered to Western Australian users.
The Alliance submission offered support for key elements of the proposed national framework, including the obligation for producers to supply, an annual compliance regime, independent monitoring and enforcement of what is delivered, and the ability for unmet commitments to be carried forward.
DomGas Alliance spokesperson Mia Davies said the focus should be on outcomes, not commitments on paper.
“An existing State policy shouldn’t be a free pass to maintain the status quo here in WA. We cannot use our reservation scheme as a shield for ongoing under-delivery.
“Western Australia has a 15 percent domestic gas policy - the federal scheme is an opportunity for the State Government and producers to demonstrate that it is delivering what it was designed to deliver.
“It's about making sure the gas promised to Western Australians is actually reaching the market when it's needed.
"There is a significant gap between the policy's stated objective and what is being delivered into the domestic market.
“If WA can demonstrate that existing commitments are being met and local users have access to reliable and affordable supply, that should be recognised under the national framework.
“The measure of success is whether gas is actually being supplied to Western Australian businesses, not whether a 15 percent commitment exists on paper,” she said.
The DomGas Alliance submission argues that any assessment of the WA market should look beyond headline supply forecasts and consider actual delivery against commitments, the availability and length of contracts, buyer experience, future industrial demand and relevant price signals.
It also calls for WA gas users to have a formal role in that assessment, saying that industrial users should be able to provide evidence about the volumes they are seeking, the contracts being offered, failed negotiations and whether supply constraints are affecting operations or investment.
Ms Davies said any finding that WA is well supplied should reflect what buyers were actually experiencing in the market, not forecasts alone.
"Domestic gas underpins a significant share of Western Australia’s economy so getting the settings right between the national and state scheme is critical," she said.
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.
Ms Davies said domestic gas supported the industries that manufacture, process and add value to Western Australia’s resources here at home.
“Western Australians should benefit from the gas resources developed in this State, not only through LNG exports, but through the businesses, jobs and economic activity created when those resources are used locally," she said.
“The DomGas Alliance sees the introduction of a national scheme as an opportunity to demonstrate our State policy is being honoured in practice.”
