A further delay to State Parliament’s domestic gas inquiry could...

A further delay to State Parliament’s domestic gas inquiry could leave the issue unresolved, Steve Thomas saysMatt MckenzieThe West AustralianTue, 13 August 2024 11:10AM

Western Australia could be left waiting until after the State election for any changes to the domestic gas scheme if a parliamentary inquiry report is again delayed.Gas users and producers are hanging on the outcome of the report amid a huge expected shortage of the fuel by the end of the decade.The West Australian revealed in June that the independent inquiry’s final analysis had been pushed back a third time, to 15 August. That means the crucial review is due within days.Parliament’s standing orders indicate the State Government will have up to three months to respond, Shadow Energy Minister Steve Thomas said.That means a further delay to the report would push the required response beyond this term of parliament.

“Any further delay in the report would mean it could not be tabled until September, which would mean no Government response would be required before the last sitting day of the 41st Parliament,” Mr Thomas said on Monday.“Under the standing orders, after the election the Government is not required to respond at all.”He said the final report may change significantly from the committee’s initial draft.“The entire energy industry needs policy certainty, and trying to respond to concerns in the middle of an election campaign would be a less than optimal outcome,” Mr Thomas said.Later on Tuesday morning, committee chair Peter Tinley said the report would be released on Thursday.“The committee is hopeful that the scope and magnitude of these recommendations will help to bring about critical improvements to the WA Domestic Gas Policy and the wider domestic gas market,” he said.“Reforms recommended in the report are made to secure WA’s domestic gas supply for decades to come.”The inquiry followed scrutiny over the level of domestic gas reserved by big offshore producers, with the State’s rules requiring 15 per cent reservation.Woodside Energy pledged an extra 50 terajoules of gas daily — about 5 per cent of local demand — from May. That followed concerns about domestic gas flows from Pluto and the North West Shelf Venture.The inquiry also sparked debate about the rules for onshore producers, which are required to reserve all of their gas for local needs — with some exceptions.That policy was introduced in 2020, with the State Government granting a sole exemption to Beach Energy and Mitsui’s Waitsia development at that time.But the reservation rules have been softened since, firstly for Black Mountain Energy’s fracking plans in the Kimberley and then last year to allow exports from the State’s far north.Energy companies say the rule makes their projects less viable, while big manufacturers want the gas for WA first to protect jobs.