WA to boost gas export
Western Australia’s gas export strategy is drawing concerns about rising household energy costs.
The state government has a plan to allow onshore gas producers to export up to 20 per cent of their supply until 2030, aiming to address future domestic shortages by boosting production.
Premier Roger Cook believes the policy will secure energy supply and keep prices stable by encouraging more gas production.
Critics, however, warn that this approach could backfire.
Curtin University energy economist Liam Wagner argues that linking onshore gas prices to higher international rates will likely drive up costs for local consumers.
Western Australia's gas prices have historically benefited from a policy requiring offshore exporters to reserve 15 per cent of their supply for the domestic market.
However, allowing onshore exports could reduce the effectiveness of this system, resulting in price hikes for consumers.
While producers claim increased supply will lower prices, consumers and industry experts are less optimistic.
Industry bodies, such as Australian Energy Producers, support the policy, arguing it will secure energy supply for the state while generating economic benefits. However, some analysts believe that the volume of gas allowed for export is too small to significantly boost onshore projects.
The Australia Institute is also critical of the government’s strategy, accusing it of prioritising exports over domestic supply.
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