❓ A WA parliamentary question probes the government's gas export policy, particularly concerning the Waitsia project and its impact on domestic gas prices and Woodside's NWS facility. The government defends its policy, stating it will stimulate investment and ensure sufficient gas supply for WA consumers.
AnsweredQoN 16Legislative Council
QuestionView source ↗
I refer to the previous decision by Premier Mark McGowan to allow the Waitsia project to supply gas from Western Australia's (WA) onshore reserves in the Perth Basin to Woodside's North West Shelf (NWS) export facility, and to the more recent decision by Premier Roger Cook to allow up to 20% of production from Perth Basin projects to supply the NWS export facility, and I ask: (a) will the Government now legislate the updated policy arrangements for the Perth Basin, including the 20% export allocation and the return to 100% reservation for the domestic market, after 31 December 2030; (b) if no to (a), why not; (c) has the Government undertaken any modelling or assessment of the impact of these decisions on WA gas prices; (d) if yes to (c), will the Minister table this analysis; (e) if no to (d), why not; (f) does the Minister accept the comments made by independent analyst and economist, Liam Wagner, who has warned that opening up of WA's domestic reserves for export would result in the onshore gas price being pegged to the international price; (g) if no to (f), what analysis is the Government relying on; (h) other than Woodside's NWS facility, which has a significant shortfall of gas from offshore fields, are there any other WA gas export facilities which are seeking to export gas from the State's onshore reserves in the next decade; (i) if no to (h), does the Minister concede that the recent moves to allow export of gas from onshore reserves are solely for the benefit of Woodside; and (j) given the very large demand for gas that will be created by Woodside's proposed NWS extension, and the fact that this facility is already a net taker of gas from the WA domestic reserves, how can the Minister assure West Australian's that it is putting their interests above the commercial interests of Woodside when making decisions about the NWS extension and the State's domestic gas reserves?
AnswerView source ↗
Answered
20 May 2025
Responded by
Leader of the House representing the Minister for State Development
Response time
6 days
(a – b) The WA Domestic Gas Policy is given effect through contractual agreements between proponents and the State, not legislation. Proponents seeking to export gas under the updated policy arrangements will need to execute a domestic gas commitment agreement with the State.
(c) No.
(d) Not applicable
(e) The WA Domestic Gas Policy does not set or regulate gas prices. Prices are determined by supply and demand dynamics and agreed to in confidential negotiations between buyers and sellers. The Government recognises that the updated policy arrangements will stimulate investment in new domestic gas supply which will be critical to meeting the State’s energy security, energy transition and economic diversification objectives.
(f – g) No. The updated policy arrangements ensure 80% of onshore gas production is reserved for the domestic gas market until 31 December 2030 after which this reservation amount will increase to 100%. These policy arrangements, in addition to the existing 15% arrangement for offshore projects, ensures that this gas is effectively quarantined from international markets. This means that the WA market is shielded from international market volatility whilst also ensuring that adequate gas is available for Western Australian businesses
(h) There are no proposals under consideration by the Government for new export agreements for WA gas export facilities.
(i) The updated policy arrangements are intended to stimulate investment in new onshore gas supply ensuring more gas is brought to market for the benefit of WA consumers.
(j) The Government will make decisions to ensure sufficient gas supply for WA consumers in the long-term. The updated policy arrangements and State approval for the North West Shelf life extension aims to ensure new onshore and offshore gas is brought to market for the benefit of WA consumers.
(c) No.
(d) Not applicable
(e) The WA Domestic Gas Policy does not set or regulate gas prices. Prices are determined by supply and demand dynamics and agreed to in confidential negotiations between buyers and sellers. The Government recognises that the updated policy arrangements will stimulate investment in new domestic gas supply which will be critical to meeting the State’s energy security, energy transition and economic diversification objectives.
(f – g) No. The updated policy arrangements ensure 80% of onshore gas production is reserved for the domestic gas market until 31 December 2030 after which this reservation amount will increase to 100%. These policy arrangements, in addition to the existing 15% arrangement for offshore projects, ensures that this gas is effectively quarantined from international markets. This means that the WA market is shielded from international market volatility whilst also ensuring that adequate gas is available for Western Australian businesses
(h) There are no proposals under consideration by the Government for new export agreements for WA gas export facilities.
(i) The updated policy arrangements are intended to stimulate investment in new onshore gas supply ensuring more gas is brought to market for the benefit of WA consumers.
(j) The Government will make decisions to ensure sufficient gas supply for WA consumers in the long-term. The updated policy arrangements and State approval for the North West Shelf life extension aims to ensure new onshore and offshore gas is brought to market for the benefit of WA consumers.
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