❓ Dr. Honey questions the Minister for Energy about potential gas shortages and energy crisis due to coal-fired power station closures. The Minister dismisses the concerns, citing past events and Honey's previous energy policies.
AnsweredQoN 522Legislative Assembly
QuestionView source ↗
ENERGY — SUPPLY
522. Dr D.J. HONEY to the Minister for Energy:
The most recent Australian Energy
Market Operator's Gas statement of opportunities for Western Australia
has already forecast a gas shortage in the
forward estimates to 2032, with additional strong growth in gas demand fuelled by the premature closure of government coal-fired power stations, delays in
future gas projects due to extended approval processes, and the financial
insecurity around our two major coal mines.
�(1) What is this
government doing to ensure that we do not see a repeat of the requirement for
industry to shut down over summer to cope with peak energy demand, as we saw in
January this year?
(2) Is the
minister persisting with plans for the forced early shutdown over the
government-owned coal-fired power stations in Collie?
(3) Is the
minister still confident that we will not see the state plunged into an energy
crisis in the next few years because of his mismanagement of the energy sector?
522. Dr D.J. HONEY to the Minister for Energy:
The most recent Australian Energy
Market Operator's Gas statement of opportunities for Western Australia
has already forecast a gas shortage in the
forward estimates to 2032, with additional strong growth in gas demand fuelled by the premature closure of government coal-fired power stations, delays in
future gas projects due to extended approval processes, and the financial
insecurity around our two major coal mines.
�(1) What is this
government doing to ensure that we do not see a repeat of the requirement for
industry to shut down over summer to cope with peak energy demand, as we saw in
January this year?
(2) Is the
minister persisting with plans for the forced early shutdown over the
government-owned coal-fired power stations in Collie?
(3) Is the
minister still confident that we will not see the state plunged into an energy
crisis in the next few years because of his mismanagement of the energy sector?
AnswerView source ↗
(1)–(3) This is a bizarre question from a man who does not
know his own role. I recently saw a letter signed by the member for Cottesloe.
On his letterhead, he said that he was the shadow Minister for Energy. Indeed,
in his signature block, he also says
that he is the shadow Minister for Energy. Perhaps the Leader of the Opposition could remind us who the shadow Minister for Energy is, because I thought it was
Hon Dr Steve Thomas. In fact —
Dr D.J. Honey : That was an old letterhead!
The SPEAKER : Order, please!
Several members interjected.
The SPEAKER : Order, please!
Mr W.J. JOHNSTON : How come it was in his address
block? How come a letter that he signed this month states in his address block
that he is the shadow Minister for Energy? He is a man who cannot remember his
own job title; it is not surprising that he does not understand anything about
energy policy in Western Australia.
I just want to point out a few things here. In January this
year, there was no energy crisis that forced industry shutdown. What occurred
was when Santos was not able to deliver gas to two companies that buy their gas
from Santos, those companies then used the flexibility and dynamic nature of Western
Australia's energy sector to buy gas to fulfil those needs that were
contracted by Santos from Chevron. Chevron's gas supply was extra to
the gas supply that Santos was required to provide to its customers. Those two
customers made business decisions to not have gas in storage. There were three
other large users of natural gas at the same time that were impacted by the three outages caused by mechanical equipment
failure at these privately owned gas facilities: Synergy, Alinta Energy and Wesfarmers' Kleenheat. All those companies had gas in storage and
were therefore able to manage the issues for that short period while the
Wheatstone facility was brought back online.
There are 11 separate points of injection of natural gas in Western
Australia; indeed, I note that the North West Shelf facility is running
significantly below its nameplate capacity. If there were a genuine crisis of
energy supply in Western Australia, the North West Shelf could significantly
increase its supply.
I also note that if there were a genuine energy crisis, laws
in Western Australia provide enormous powers of intervention to both the
Minister for Energy and the Coordinator of Energy. Had those powers needed to
be used, they could have been used. But the fact remains that they were never
required in January this year.
Now, there is a separate issue. That is what the member got
wrong in his preamble. Then he went to the question of the transition of the
energy system in Western Australia. Firstly, I want to remind the member for
Cottesloe that even after the 2021 election, he was still promoting his plan to
close all government-owned coal-fired power stations, not in 2029, but in 2025.
That was his policy! He was elected at the last election and he sits in this
chamber on the basis of his policy, which was to close every government-owned
power station by 2025, and then he comes along and criticises our structured,
sensible plan. He also forgets about why we have come up with our structured,
sensible plan. We are not going on ideology like he did at the election when he
said that hydrogen was the future and that only hydrogen production could
supply energy to the south west system here in Western Australia.
Dr D.J. Honey : You know that's not true.
Mr W.J. JOHNSTON : That is exactly what you said. Go
and read your own documentation! I point out to the member that the reason we
are retiring the coal-fired power plants is they no longer fit into the energy
system in Western Australia.
Ms J.J. Shaw : And he was on the committee!
Mr W.J. JOHNSTON : He knows this!
Ms J.J. Shaw : He knows this!
Mr W.J. JOHNSTON : That is exactly right. This is the
thing.
Ms J.J. Shaw : He made the recommendations!
The SPEAKER : Order, please!
Mr W.J. JOHNSTON : It is absolutely true that he was on
the committee that made these very recommendations. No wonder we are
implementing the suggestions that he had. I just put to the member that at some
point he is going to have to stop listening to the people who look at the past
and start thinking about the future. We have the big battery already working in
Kwinana, the Kwinana battery energy storage system 2 under construction, and
CBESS down in Collie is awaiting planning approvals, but long-lead items have
already been purchased and the contractor has
already been arranged. Neoen is also building a battery in Collie. Another
company—it is up to that company, because it is a listed company—is
pending for its battery. The electrical system in Western Australia is
transitioning at pace. We have the north west interconnected system. For the
first time in 40 years, we finally got agreement to an integrated energy scheme
in the north west. The achievements in the energy system here on this side of
the Parliament are legendary, and the member sits there, advertising his
ignorance and showing his lack of understanding.
know his own role. I recently saw a letter signed by the member for Cottesloe.
On his letterhead, he said that he was the shadow Minister for Energy. Indeed,
in his signature block, he also says
that he is the shadow Minister for Energy. Perhaps the Leader of the Opposition could remind us who the shadow Minister for Energy is, because I thought it was
Hon Dr Steve Thomas. In fact —
Dr D.J. Honey : That was an old letterhead!
The SPEAKER : Order, please!
Several members interjected.
The SPEAKER : Order, please!
Mr W.J. JOHNSTON : How come it was in his address
block? How come a letter that he signed this month states in his address block
that he is the shadow Minister for Energy? He is a man who cannot remember his
own job title; it is not surprising that he does not understand anything about
energy policy in Western Australia.
I just want to point out a few things here. In January this
year, there was no energy crisis that forced industry shutdown. What occurred
was when Santos was not able to deliver gas to two companies that buy their gas
from Santos, those companies then used the flexibility and dynamic nature of Western
Australia's energy sector to buy gas to fulfil those needs that were
contracted by Santos from Chevron. Chevron's gas supply was extra to
the gas supply that Santos was required to provide to its customers. Those two
customers made business decisions to not have gas in storage. There were three
other large users of natural gas at the same time that were impacted by the three outages caused by mechanical equipment
failure at these privately owned gas facilities: Synergy, Alinta Energy and Wesfarmers' Kleenheat. All those companies had gas in storage and
were therefore able to manage the issues for that short period while the
Wheatstone facility was brought back online.
There are 11 separate points of injection of natural gas in Western
Australia; indeed, I note that the North West Shelf facility is running
significantly below its nameplate capacity. If there were a genuine crisis of
energy supply in Western Australia, the North West Shelf could significantly
increase its supply.
I also note that if there were a genuine energy crisis, laws
in Western Australia provide enormous powers of intervention to both the
Minister for Energy and the Coordinator of Energy. Had those powers needed to
be used, they could have been used. But the fact remains that they were never
required in January this year.
Now, there is a separate issue. That is what the member got
wrong in his preamble. Then he went to the question of the transition of the
energy system in Western Australia. Firstly, I want to remind the member for
Cottesloe that even after the 2021 election, he was still promoting his plan to
close all government-owned coal-fired power stations, not in 2029, but in 2025.
That was his policy! He was elected at the last election and he sits in this
chamber on the basis of his policy, which was to close every government-owned
power station by 2025, and then he comes along and criticises our structured,
sensible plan. He also forgets about why we have come up with our structured,
sensible plan. We are not going on ideology like he did at the election when he
said that hydrogen was the future and that only hydrogen production could
supply energy to the south west system here in Western Australia.
Dr D.J. Honey : You know that's not true.
Mr W.J. JOHNSTON : That is exactly what you said. Go
and read your own documentation! I point out to the member that the reason we
are retiring the coal-fired power plants is they no longer fit into the energy
system in Western Australia.
Ms J.J. Shaw : And he was on the committee!
Mr W.J. JOHNSTON : He knows this!
Ms J.J. Shaw : He knows this!
Mr W.J. JOHNSTON : That is exactly right. This is the
thing.
Ms J.J. Shaw : He made the recommendations!
The SPEAKER : Order, please!
Mr W.J. JOHNSTON : It is absolutely true that he was on
the committee that made these very recommendations. No wonder we are
implementing the suggestions that he had. I just put to the member that at some
point he is going to have to stop listening to the people who look at the past
and start thinking about the future. We have the big battery already working in
Kwinana, the Kwinana battery energy storage system 2 under construction, and
CBESS down in Collie is awaiting planning approvals, but long-lead items have
already been purchased and the contractor has
already been arranged. Neoen is also building a battery in Collie. Another
company—it is up to that company, because it is a listed company—is
pending for its battery. The electrical system in Western Australia is
transitioning at pace. We have the north west interconnected system. For the
first time in 40 years, we finally got agreement to an integrated energy scheme
in the north west. The achievements in the energy system here on this side of
the Parliament are legendary, and the member sits there, advertising his
ignorance and showing his lack of understanding.
Explore WA Government Data
Search the full archive in the free dashboard, or query programmatically via API.
Explore more
Government Gazette
Appointments, regulatory notices, planning changes.
Hansard
Debates, questions, speeches and sentiment.
Tabled Papers
Reports and documents tabled in Parliament.
Committees
Committee profiles and recent reports.
Regulations
Subsidiary legislation with filters and summaries.
Bills
Proposed laws and parliamentary progress.
Acts
Current WA legislation and summaries.
Explanatory Memoranda
Bills with EMs (text/PDF) available.
Members
MP profiles, party breakdown and rankings.
Pollie Rankings
Data-driven rankings across 19 categories.
Amendment Chains
Track how schemes and regulations evolve over time.