Premier Alan Carpenter has again spoken out in favour of reserving up to 20 per cent of WA's natural gas fields solely for domestic use, saying that the state's allocation will be run dry in 10-15 years at current export rates.
Premier Alan Carpenter has again spoken out in favour of reserving up to 20 per cent of WA's natural gas fields solely for domestic use, saying that the state's allocation will be run dry in 10-15 years at current export rates.
In a media release, Mr Carpenter said the government's already existing domestic gas policies needed to be maintained in order to guarantee Western Australia's future energy needs and supplies.
"If there is uncertainty over our long term natural gas supplies, then that would adversely affect electricity prices and investment in key economic projects," he said.
Mr Carpenter's warning comes amid raging debate on future energy policy, notably the future of nuclear fuel. His government has remained committed to barring mining for uranium despite Federal Labor's increasing comfort with the concept of ditching the current three-mines policy.
The idea of domestic gas reserves reappeared on the WA political scene in a discussion paper released by the state government in February. Feedback continues to be sought on this proposal, though not everything has gone the government's way, with the Premier labelling some comments unnecessary.
"This process requires constructive dialogue with all the relevant parties. Personalised, emotive language will not help us achieve a mutually acceptable position," he said.
His comments follow a rejection of the idea by Woodside chief executive Don Voelte, who was quoted as saying the proposal was "crazy", and that taking on Woodside in this debate was a bad idea, as the company held substantial resources on these matters.
However, yesterday WA's major energy suppliers including Alinta and Synergy effectively come out in support of the state goverment proposal to reserve a portion of the State's gas reserves for domestic use.
The gas producers are concerned that reserving gas for the domestic market will stop them selling into export markets at higher prices.
In a joint statement, Synergy, Alinta, Energy Developments, Burns and Roe Worley and NewGen Power said the state government was to be commended for initiating debate about the future of WA's domestic gas supplies.
"We appreciate the export market for gas is very attractrive for producers, but at the same time, we need to consider the importance of gas to our local economy," the statement said.
The full announcement from the Premier's office is pasted below
Premier Alan Carpenter has called on all relevant parties to engage constructively in the current debate over the future of Western Australia's gas supplies.
Mr Carpenter said there had been some unnecessary and emotive commentary in recent days that did nothing to help secure long-term domestic gas supplies for WA.
"This is a serious issue because under current domestic gas contracts, natural gas supplies for WA households and industry could run out within 10 to15 years," he warned.
Originally the North West Shelf Joint Venture had to reserve 4.6 trillion cubic feet for domestic use. There is about 2.6 tcf remaining and WA's annual gas consumption is 0.27 tcf.
In February, the State Government released a discussion paper that, among other things, suggested between 10 to 20 per cent of all WA offshore gas reserves be set aside for WA households and businesses. Feedback is continuing to be sought.
"There is nothing new about having a domestic gas policy," the Premier said.
"A domestic gas policy has been in place since the establishment of the North West Shelf gas industry but as new fields continue to be developed, the policy needs to be maintained.
"I totally support and promote the Liquefied Natural Gas export industry, but I also have to ensure WA's own energy supplies are guaranteed well into the future.
"I would be neglecting my responsibilities if I ignored WA's future energy needs and natural gas is part of those needs.
"This process requires constructive dialogue with all the relevant parties. Personalised, emotive language will not help us achieve a mutually acceptable position."
Mr Carpenter said WA's households and businesses now relied on a competitive mix of natural gas, coal and renewable energies.
"If there is uncertainty over our long term natural gas supplies, then that would adversely affect electricity prices and investment in key economic projects," he said.
"That is not good for WA householders, the WA economy and therefore the Australian economy."
