State Gov to secure gas supplies

Following the Varanus Island explosion last year and today's massive Gorgon gas deal announced with China, the state government has introduced legislation to avert future gas shortages and secure WA's future gas supply.

Energy Minister Peter Collier said the Gas Supply (Gas Quality Specifications) Bill 2009 would allow the development of a greater range of gas fields to supply the domestic market.

Full announcement below:

Bill to help secure long-term gas supplies.

The State Government has introduced a Bill to Parliament to help secure long-term gas supplies for Western Australia.

Introducing the legislation is just one of several measures the State Government is taking to avert future shortages and ensure WA is better prepared for any future gas supply disruptions.

Energy Minister Peter Collier said the Gas Supply (Gas Quality Specifications) Bill 2009 would allow the development of a greater range of gas fields to supply the domestic market.

"This is expected to provide increased competition in supplying the State's gas needs and ensuring improved security of energy supply through a more diverse range of gas sources," he said.

"There were two significant gas supply disruptions last year, highlighting the need to develop strategies to avert future shortages and provide secure energy supply to meet the needs of the community."

Mr Collier said as a result of the new legislation, some pre-1980s gas appliances may be rendered unsafe if operated on leaner gas.

"An Appliance Rectification Program will be introduced before the leaner gas starts flowing, to replace these appliances at no charge or to service the appliance if this will make it safe," he said.

"This program will be funded by the producers who intend to supply gas with a leaner energy content, ensuring safety to residential consumers, schools and institutions."

The legislation is expected to be passed by the end of this year.

"The Government has established the Gas Supply and Emergency Management Committee to review the security of the State's gas supplies and how gas supply disruptions are managed," the Minister said.

"The committee is due to provide me with its final report next month."