Domestically focused gas producers in Western Australia have the processing capacity to supply 85 per cent of WA’s domestic gas needs, provided change to the state’s gas reservation policy.

The latest Gas Statement of Opportunities (GSOO) released by WA’s Independent Market Operator demonstrates the potential for increased demand for natural gas for the state’s industries.

APPEA Chief Operating Officer, Western Region, Stedman Ellis, said, “The GSOO adds to the recent International Energy Agency World Energy Outlook findings that highlight the important role that natural gas can play as a competitively priced and cleaner-burning fuel for both industrial and residential use.

“The use of domestic LNG and compressed natural gas facilities has the potential to make gas supply accessible to remote areas of Western Australia while also increasing gas demand as a substitute for diesel.”

Mr Ellis said the GSOO forecasts that WA will be well supplied out to 2024 on the back of significant investment in gas processing capacity.

“There have been significant discoveries of natural gas onshore in the mid-west in 2014 and 2015 that are trying to find a way to market,” Mr Ellis said.

“However, the state’s gas reservation policy continues to stifle the increased energy security, investment, jobs and royalties that will come with a growing onshore gas industry.

Mr Ellis said the state government should focus on facilitating investment in the onshore sector by means other than penalising investment in offshore gas.

“With the recent collapse in private sector investment in Australia, removing the reservation policy would send a strong signal to investors that WA is open for business,” Mr Ellis said.

Jessica Dickers is an experienced journalist, editor and content creator who is currently the Editor of Utility’s sister publication, Infrastructure. With a strong writing background, Jessica has experience in journalism, editing, print production, content marketing, event program creation, PR and editorial management. Her favourite part of her role as editor is collaborating with the sector to put together the best industry-leading content for the audience.

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