Premier Alan Carpenter officially released his controversial domestic gas reservation policy today, with the policy centrepiece being to set aside 15 per cent of gas available in future for use in WA.
Premier Alan Carpenter officially released his controversial domestic gas reservation policy today, with the policy centrepiece being to set aside 15 per cent of gas available in future for use in WA.
The full text of an edited announcement is pasted below, as is a past release on the matter:
Premier Alan Carpenter today released the State Government's domestic gas reservation policy to help secure Western Australia's long-term energy supplies.
The centrepiece of the policy is to set aside for domestic use the equivalent of 15 per cent of gas available from any future offshore development.
Mr Carpenter said the 15 per cent figure reflected current estimates of future domestic gas needs, estimated gas reserves and forecast Liquefied Natural Gas export production.
"The State Government will apply this policy as part of the negotiating process with export gas producers," he said.
"However, there is flexibility built into the policy to allow for each project to be negotiated on a case-by-case basis.
"This may allow producers to trade gas from other fields or negotiate a suitable timetable for delivery of gas into the WA market."
The Premier said this policy was essential to the State's long-term economic future.
"Natural gas is now the power source for 60 per cent of our electricity generation but contracted gas supplies from our North West Shelf are due to expire in 10 to 15 years' time," he said.
"We need to act now to ensure we have access to gas as an energy source for many, many years ahead.
"Domestic gas reservation has underpinned our export gas industry since its inception in the early 1980s and there is no reason why it should be abandoned.
"It has been proven over the years that the LNG export industry can work co-operatively and effectively with the domestic gas industry."
Mr Carpenter thanked Department of Industry and Resources staff, gas producers and gas user groups for their co-operation during the policy development process.
Below is a release from September 15:
Premier Alan Carpenter has dismissed claims made in today's The Australian newspaper regarding the State Government's domestic gas reservation policy ('Gas backdown good for Pluto', page 21).
Mr Carpenter said there had been no modification of Western Australia's domestic gas reservation policy, and the assertion of a blanket reservation requirement was incorrect.
"We have never talked about applying a blanket reservation requirement and have always made it clear that we would be flexible in our domestic gas reservation negotiations," he said.
"We are fully aware that the financial impact of domestic gas reservations is likely to vary between projects, and as such, it will be important to design some flexibility into the system, such as enabling projects to 'trade' domestic gas reserves.
"That has been our position since day one and is clearly outlined in our domestic gas reservation consultation paper, which was released in February this year."
The Premier said a domestic gas reservation policy was not new and that his sole intention was to secure WA's future energy supplies.
"Our domestic gas reservation policy is overwhelmingly supported by the people of WA who understand the ramifications of not securing domestic gas reserves," he said.
"If we do not move to secure long-term future gas supplies for domestic use, then the State's economy will be left vulnerable.
"We cannot run the risk of 100 per cent of WA offshore gas reserves being contracted for sale to overseas buyers and none of it made available for WA consumers.
"That would be a dereliction of my duty as Premier and our duty as the WA Government."
The WA Government Policy on Securing Domestic Gas Supplies Consultation Paper can be viewed at http://www.doir.wa.gov.au/documents/mineralsandpetroleum/DomGas_Consultation_Paper.p
