State Policy
Western Australia’s Domestic Gas Reservation Policy’s intent is to ensure liquefied natural gas (LNG) exporters also make gas available for the domestic market.
Western Australia’s Domestic Gas Reservation Policy (Policy) aims to secure WA’s long-term energy needs and ongoing economic development by ensuring that LNG exporters make gas available for the domestic market.
First formalised in 2006, the policy has been updated in 2012, 2020, and most recently in September 2024 following a Parliamentary Inquiry.
The Department of Energy and Economic Diversification (DEED) implements, assesses compliance and enforces the Policy on behalf of the WA Government.
The Policy is given effect through long-term agreements executed between the WA Government and LNG exporters, referred to as Domestic Gas Commitment Agreements. There are currently six gas agreements. These agreements are struck prior to project commencement and require LNG exporters to make domestic gas available by:
Reserving gas equivalent to 15 percent of LNG production for the WA market.
Developing and/or obtaining access to the necessary infrastructure to meet their domestic gas commitments.
Making gas available to existing and prospective customers by demonstrating diligence and good faith in marketing.
Prices and contracts for domestic gas are set by market participants through confidential negotiations. The Policy only applies once the gas comes onshore to local facilities to be processed into LNG and domestic gas.
Compliance
The Department of Energy and Economic Diversification (DEED) assesses compliance with the Policy based on annual domestic gas reports submitted by the LNG exporters. The provision of these reports is a requirement under the various agreements that the LNG exporters are a party to with the WA Government. LNG exporters are required to report individually and on a confidential basis to DEED by 31 March each year.
DEED provides its annual compliance assessment to the Minister for State Development in Q3 each year, with the Minister then writing to each LNG exporter in response to their annual domestic gas reports.
WA Domestic Gas Statement
The WA Domestic Gas Statement (Statement) is designed to provide market participants with information on each operating domestic gas project. It also summarises how LNG exporters are complying with their respective domestic gas commitments and how much gas is expected to be supplied in the WA market in the short to medium term. The Statement is updated on an annual basis.
More information
Information about WA’s Domestic Gas Reservation Policy and related agreements, documents, presentations and submissions can be found at WA Domestic Gas Policy
Parliamentary Inquiry
Between June 2023 and August 2024, the WA Parliament's Economics and Industry Standing Committee (EISC) undertook an Inquiry reviewing the effectiveness of the Policy to respond to the risk of forecast market shortfalls and the transparency of supply and prices of gas. The EISC highlighted 77 findings and made 30 recommendations for Government to consider.
