State govt quiet on gas trading scheme

Businesses and companies seeking assurances of a longer-term gas supply allocation will have to wait a little longer, as the government keeps quiet on details of an official gas trading scheme.

The government along with members of its Gas Supply Coordination Committee are working out the finer details of a scheme that will allow businesses to trade gas with each other.

Since the pipeline rupture and subsequent explosion at Apache Energy Ltd's Varanus Island gas facility early last month, businesses have had to rely on daily gas allocations from Alinta, which serves gas supply notices to businesses late in the afternoon.

"We are working on a scheme that is currently being finalised and we expect to release something this week," a spokesperson for state energy minister Francis Logan told WA Business News.

Since the gas crisis started, businesses in the state have had to switch to diesel to power operations however some, including nickel producers, need gas to operate.

As a result, some companies have been forced to cut production figures while seeking alternative gas supplies.

Apache said partial production at its gas facility is anticipated to resume mid August while full production will start in December.