State launches gas and energy review

Coordinator of Energy Jason Banks will chair a new committee that will review the state's gas supplies and examine ways to improve the management of energy emergencies.

The proposed review will be undertaken by the Gas Supply and Emergency Management Committee, which will also identify risks to the WA's supply of gas, including the amount of gas reserves available to the domestic market as well as processing and gas delivery.

The committee's membership will be finalised within weeks and is expected to include government representatives, gas producers and retailers and major gas users.

It will also include representatives from Dampier Bunbury Pipeline, Chamber of Commerce and Industry and the Chamber of Minerals and Energy.

The review follows the recent Senate report into the Varanus Island gas explosion and the recent announcement that the state and federal governments will hold a joint inquiry into the regulatory system for petroleum operations.

The government announcement is below:

Energy Minister Peter Collier has moved to avert future shortages, due to unforeseen events, of Western Australia's gas supplies by establishing a major review of the state's gas provisions.

A proposed review, to be undertaken by the Gas Supply and Emergency Management Committee, will identify risks to the State's supply of gas, including the amount of gas reserves available to the domestic market as well as processing and gas delivery.

It will also examine ways to improve the management of energy emergencies.

Chaired by Coordinator of Energy, Jason Banks, the committee is expected to begin work in March 2009 and will be asked to report to the State Government in September.

This follows the recent Senate report on the Varanus Island gas pipeline explosion in June 2008, which recommended further reviews of gas security and the management of gas supply disruptions.

It also follows the State Government's recent announcement of a joint inquiry with the Commonwealth into the effectiveness of the regulatory system and regulators for upstream petroleum operations, following the Varanus Island incident.

While the committee's membership will be finalised within weeks, it will comprise key government representatives; gas producers and retailers; major gas users, including electricity generators and networks; and representatives from Dampier Bunbury Pipeline Ltd; Chamber of Commerce and Industry and the Chamber of Minerals and Energy.

Mr Collier said there was an expectation from the community and business that the Government would review energy security in a timely manner.

"This review supports the Government's objective of providing secure energy supply to meet the needs of the community and to support the state's economy," he said.

"The review will consider the range of plausible gas supply shortage events and the best way to minimise any impacts on our community and business."

The Minister said the committee would provide advice to the State Government on lessons learnt from the Karratha gas supply disruption in January 2008 and the Varanus Island disruption in June 2008.

"The review will incorporate work previously done by the Office of Energy in preparing a report into the management and impacts of the Karratha gas supply disruption," he said.

"When the Liberal-National Government was elected in September 2008, the report was still incomplete.

"A final version of the report has not been provided to this Government as it was always envisaged that it would be combined with a review of the Varanus Island incident and a broader review of gas supply security and emergency management."