❓ The Premier outlines updates to WA's domestic gas policy, increasing onshore gas reservation to 80% until 2030 and 100% thereafter, aiming to secure affordable energy and support the renewable energy transition. They also plan to strengthen 'use it or lose it' provisions and increase transparency.
AnsweredQoN 641Legislative Assembly
QuestionView source ↗
DOMESTIC GAS POLICY
641. Mr Y. MUBARAKAI to the Premier:
I refer to the Cook Labor government's
review of Western Australia's domestic gas policy.
(1) Can the
Premier advise the house of the outcomes of this review?
(2) Can the
Premier advise the house what these outcomes will mean for households and
industry in Western Australia?
641. Mr Y. MUBARAKAI to the Premier:
I refer to the Cook Labor government's
review of Western Australia's domestic gas policy.
(1) Can the
Premier advise the house of the outcomes of this review?
(2) Can the
Premier advise the house what these outcomes will mean for households and
industry in Western Australia?
AnswerView source ↗
(1)–(2) I
thank the member for the question. Today is a historic
day. It is a historic day for Western Australian industry and for Western Australian
households , because it is, once again, a Labor government that is taking
the next steps towards continuing to secure our energy future and making sure
that we continue to be that state—the one that took steps to secure gas
for Western Australians.
As we know, the gas beneath the
surface of this earth belongs to Western Australians. This is Western Australia,
so it is Western Australians who should benefit most from the exploitation of
that gas. The people can always rely on my government to put Western Australians
first by making sure that we take good care of the natural resources that we
are blessed with.
There is perhaps no better example of
the way we look after Western Australians than through the state's
landmark domestic gas policy. The original policy was first put in place by Hon
Alan Carpenter nearly 20 years ago. Ever since then, it has delivered Western Australian
households and industry with an abundance of
low-cost gas. I remember at the time when it was announced that those opposite
and industry were saying that it would destroy investment and get in the
way of the strong growth of our gas supplies. It
did the exact opposite, of course, and has actually ensured that Western Australians
were afforded reliable and affordable gas into the future. Given the
role of gas-powered generation on our grid, it has also meant that Western Australians
have reliable and affordable power, underpinning industrial growth and major cost savings for local families. It has helped us
to avoid the skyrocketing energy prices and the gas shortages that we
now see right across eastern states. We only have to look at that volatility
over there to recognise that we have a good thing going on here in WA.
That said, it is clear that after
nearly 20 years, the domestic gas policy needs a refresh. WA is on its way to becoming
a global renewable energy powerhouse and if we are going to achieve that energy
transition, we need available and affordable
gas to ensure that it provides a smoothing fuel as we transition to renewable energy. Our exports to our trading partners also rely upon gas to make sure
that they can undertake that energy transition. Just this week, more than half
the electricity generated on WA's main grid came from renewables. We
have to do more, and gas will continue to be required as a firming fuel, particularly
as we finish coal-fired power station generation in the state by 2030. We are
the only state in this country to commit to eliminating coal-fired power
stations in the grid.
After a detailed review including
extensive consultation, today we have announced some updates. Firstly, between
now and 31 December 2030, WA will have an 80 per cent onshore gas reservation
policy. This means that we will require new onshore gas projects to reserve 80 per
cent of gas production for WA in domestic
use, and after 2030, onshore gas projects will be required to reserve 100 per cent
of gas production for the local
market. That offers a five-year window whereby companies can export 20 per cent
of onshore gas. We believe that this will help stimulate development
while WA's gas market is balanced and it will mean that from 2031
onwards, WA will retain 100 per cent of the gas we need to power our economy
and keep energy prices affordable. The updated policy will apply to new onshore
gas projects or existing projects seeking to expand production. To be clear,
our successful 15 per cent reservation for offshore liquefied natural gas projects will remain unchanged. We will work with
industry to ensure that obligations are met.
Secondly,
to accelerate onshore gas development, we will strengthen our use of ''use
it or lose it'' provisions. The aim here is to prevent companies
from holding on to gas tenements and not developing them. Finally, we will
deliver more transparency around the domestic gas policy, and today we are
publishing the first of what will be called the WA domestic gas statement. This
will be an annual statement showing how much gas each project has supplied to
the domestic market compared with their obligations under the policy. Only WA
Labor has the clear, realistic and effective path forward for the energy
transition of the state. Our domestic gas policy, along with preventing Western
Power from being privatised, has offered Western
Australians unparalleled affordability and opportunity when it comes to the
energy transition. Our refreshed policy provides certainty for gas
producers and users, and my government will always support affordable reliable
energy for WA households and industry into the future because we always do what
is right for WA.
Visitors — Australian
Irish Heritage Association
The DEPUTY SPEAKER : The
member for Landsdale has brought to my attention that we are joined in the
Speaker's Gallery by members of the Australian Irish Heritage
Association, celebrating its thirtieth anniversary. They are visiting
Parliament as guests of the President of the Legislative Council. Welcome to
Parliament.
thank the member for the question. Today is a historic
day. It is a historic day for Western Australian industry and for Western Australian
households , because it is, once again, a Labor government that is taking
the next steps towards continuing to secure our energy future and making sure
that we continue to be that state—the one that took steps to secure gas
for Western Australians.
As we know, the gas beneath the
surface of this earth belongs to Western Australians. This is Western Australia,
so it is Western Australians who should benefit most from the exploitation of
that gas. The people can always rely on my government to put Western Australians
first by making sure that we take good care of the natural resources that we
are blessed with.
There is perhaps no better example of
the way we look after Western Australians than through the state's
landmark domestic gas policy. The original policy was first put in place by Hon
Alan Carpenter nearly 20 years ago. Ever since then, it has delivered Western Australian
households and industry with an abundance of
low-cost gas. I remember at the time when it was announced that those opposite
and industry were saying that it would destroy investment and get in the
way of the strong growth of our gas supplies. It
did the exact opposite, of course, and has actually ensured that Western Australians
were afforded reliable and affordable gas into the future. Given the
role of gas-powered generation on our grid, it has also meant that Western Australians
have reliable and affordable power, underpinning industrial growth and major cost savings for local families. It has helped us
to avoid the skyrocketing energy prices and the gas shortages that we
now see right across eastern states. We only have to look at that volatility
over there to recognise that we have a good thing going on here in WA.
That said, it is clear that after
nearly 20 years, the domestic gas policy needs a refresh. WA is on its way to becoming
a global renewable energy powerhouse and if we are going to achieve that energy
transition, we need available and affordable
gas to ensure that it provides a smoothing fuel as we transition to renewable energy. Our exports to our trading partners also rely upon gas to make sure
that they can undertake that energy transition. Just this week, more than half
the electricity generated on WA's main grid came from renewables. We
have to do more, and gas will continue to be required as a firming fuel, particularly
as we finish coal-fired power station generation in the state by 2030. We are
the only state in this country to commit to eliminating coal-fired power
stations in the grid.
After a detailed review including
extensive consultation, today we have announced some updates. Firstly, between
now and 31 December 2030, WA will have an 80 per cent onshore gas reservation
policy. This means that we will require new onshore gas projects to reserve 80 per
cent of gas production for WA in domestic
use, and after 2030, onshore gas projects will be required to reserve 100 per cent
of gas production for the local
market. That offers a five-year window whereby companies can export 20 per cent
of onshore gas. We believe that this will help stimulate development
while WA's gas market is balanced and it will mean that from 2031
onwards, WA will retain 100 per cent of the gas we need to power our economy
and keep energy prices affordable. The updated policy will apply to new onshore
gas projects or existing projects seeking to expand production. To be clear,
our successful 15 per cent reservation for offshore liquefied natural gas projects will remain unchanged. We will work with
industry to ensure that obligations are met.
Secondly,
to accelerate onshore gas development, we will strengthen our use of ''use
it or lose it'' provisions. The aim here is to prevent companies
from holding on to gas tenements and not developing them. Finally, we will
deliver more transparency around the domestic gas policy, and today we are
publishing the first of what will be called the WA domestic gas statement. This
will be an annual statement showing how much gas each project has supplied to
the domestic market compared with their obligations under the policy. Only WA
Labor has the clear, realistic and effective path forward for the energy
transition of the state. Our domestic gas policy, along with preventing Western
Power from being privatised, has offered Western
Australians unparalleled affordability and opportunity when it comes to the
energy transition. Our refreshed policy provides certainty for gas
producers and users, and my government will always support affordable reliable
energy for WA households and industry into the future because we always do what
is right for WA.
Visitors — Australian
Irish Heritage Association
The DEPUTY SPEAKER : The
member for Landsdale has brought to my attention that we are joined in the
Speaker's Gallery by members of the Australian Irish Heritage
Association, celebrating its thirtieth anniversary. They are visiting
Parliament as guests of the President of the Legislative Council. Welcome to
Parliament.
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