Media Release: WA gas inquiry ignores cost of living pressures and need for new gas supply

A parliamentary inquiry into Western Australia’s Domestic Gas Policy has failed households and businesses by failing to address the need for reliable and affordable energy supply.

Australian Energy Producers today said the Economics and Industry Standing Committee call for government intervention in the market would not unlock the new gas supply required to meet growing demand in the state.

In December, the Australian Energy Market Operator (AEMO) warned of a decade of shortages due to growing demand driven by gas replacing coal in electricity and powering mining.

Australian Energy Producers WA Director Caroline Cherry said: “The last thing WA households and businesses need is government intervention because that will only spook investment in the new gas supply that is urgently needed.

“WA gas producers have played an important role for a long time providing reliable energy supply, but government policies that unlock new gas reserves to alleviate potential shortfalls and put downward pressure on prices is what is needed.

“For example, fixing approvals processes is one of the fastest ways to get new gas to the market.

“While this committee of MPs are entitled to their opinions, we must follow the facts and expert advice.

“Over summer, Premier Cook said he was focused on policies to bring on new gas supply after the latest independent assessment by the energy policy experts at AEMO.”

The gas industry today renewed its calls for the government to lift the export ban on onshore projects to make ventures more commercially viable – and deliver more domestic gas supply.

“The government must rethink its ban on onshore projects accessing export markets,” Ms Cherry said.

“As Rystad Energy found last year, allowing onshore gas projects to export expands the number of viable projects – unlocking new domestic supply.”

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