The Western Australian Government will retain its 15 per cent domestic gas reservation requirement for all gas projects, and implement measures to improve transparency in the gas market.

 

Premier Colin Barnett today tabled the Government’s formal response to the recommendations of the Economics and Industry Standing Committee’s Inquiry into Domestic Gas Prices.

 

Mr Barnett said that, as recommended, the State Government would retain a flexible approach to how the requirement is implemented, to take into consideration the commercial viability of a project. 

 

“This flexibility will be retained unless an independent study can show that a stricter approach would be more effective,” he said.

 

The Government is developing a framework to clarify ‘commercial viability’ of domestic gas requirements, and will consult with industry before finalising the framework.

 

“The Government is already implementing a Gas Market Bulletin Board and Gas Statement of Opportunities and developing more reliable gas demand and supply forecasts as recommended by the committee,” the Premier said.

 

“We have also approached the Federal Government to include a domestic gas supply requirement in the conditions for granting or renewing offshore petroleum leases in Commonwealth waters.

 

Mr Barnett said that many of the committee’s other recommendations were already under way in one form or another and had been noted.

 

These included working with operators of LNG projects to secure assurances about future supply and timelines; and encouraging the safe development of unconventional gas resources.

 

The Premier thanked the committee for their hard work in presenting a comprehensive report on a complex issue.