Woodside has banked more than $5 billion by exporting gas that should have been reserved for local use, new analysis from the DomGas Alliance reveals.
Since 2017, gas from the Pluto LNG facility near Karratha has delivered billions in export profits for gas that should have stayed in Western Australia.
That state’s domestic gas policy requires gas producers to reserve 15 per cent of production for the domestic market. Yet from the March 2017 quarter to the December 2025 quarter, Woodside delivered just 3.4 per cent, falling dramatically short of its obligations.
Based on JKM, the benchmark price for spot LNG delivered to major Asian economies, and where most Pluto gas is sent, the missing domestic gas exported from Pluto has a value of over $5 billion.
With gas supplies disrupted by the Iran war and JKM prices doubling since December 2025, the pull to export WA gas overseas has never been stronger.
Had the gas been sold into the domestic market, Woodside would have made almost $1.5 billion based on the domestic spot price[1], but it opted to chase higher profits overseas. ACIL Allen modelling shows domestic gas delivers eight times the economic value of exports, meaning Woodside’s undersupply of the local market could have created over $12 billion in economic activity for Western Australia.
In total, 285,000 terajoules of gas that should have powered the WA economy were instead shipped overseas. With the local market consuming roughly 1,000 terajoules per day, this missing gas could have powered Western Australia for 285 days.
Despite a policy designed to guarantee Western Australians access to 15 per cent of the state’s exported gas, Woodside has repeatedly failed to deliver - prioritising export profits over local energy security, local jobs, and the state economy.
Recent global shocks - including COVID‑19, Russia’s invasion of Ukraine and conflict in the Middle East - have highlighted the fragility of international supply chains underpinning Australia’s economy.
Strengthening sovereign capability is critical to ensuring resilience against future disruptions. In Western Australia, this means the capacity to manufacture goods essential to our agriculture, mining and construction sectors, and to invest in value‑adding industries that support jobs and economic growth.
However, this cannot be achieved without secure, affordable gas. The WA Government’s negotiations with Woodside over Pluto’s domestic gas supply must ensure local supply is brought up to required levels.
Attributable to DomGas Alliance Spokesperson Mia Davies:
“Woodside is shipping gas offshore while locals get fumes.
“They are selling gas that should be reserved for Western Australians to the world, at our expense. Domestic supply is being sacrificed on the altar of export profit margins.
“Delivering just 3.4% of the obligated 15% is not a shortfall; it is an abject failure.
“Western Australians deserve better. This gas should be supporting WA jobs, homes and businesses – not sent overseas. Domestic gas powers WA’s economy, supporting mining, industry and food production, and the livelihoods of over 400,000 Western Australians.
“Woodside is making the conscious decision to chase profits instead of supplying gas to the local market, as they are required.
“We are at risk of sleepwalking into a gas crisis, just as we did with fuel, while Woodside profits instead of putting Western Australia first.
“The state government is currently in negotiations with Woodside over the domestic gas Pluto supplies; this issue must be resolved, and Woodside needs to deliver its obligation in full.
“Without clear Government oversight, there is a real risk that our domestic gas supply will continue to be undermined right at the time our industry and households need certainty.
“With a new CEO in place, now is the perfect opportunity for Woodside to change and start doing right by Western Australians.”
[1] https://www.gastrading.com.au/spot-market/historical-prices-and-volume/price-history-table
