WA energy giants told to use gas fields Tom Rabe Western...

WA energy giants told to use gas fields


Tom Rabe
Western Australia has urged the Commonwealth to flex its ‘‘use it or lose it’’ powers on energy giants holding rights for several major offshore gas fields, as the industry claims the Albanese government’s policies are driving away international investment.
Warnings of a looming gas shortage in WA prompted the state’s energy minister to write to his federal counterparts suggesting several retention licences on major fields off the WA coast not be extended, which would force the titleholders to develop the assets or lose them within a five-year time frame.
As gas companies come under increasing pressure to develop their assets off the WA coast, Australian Energy Producers chief executive Samantha McCulloch blamed the Albanese government’s policy settings for scaring off international investment and slowing progress.
‘‘Recent federal policy decisions and interventions have damaged investor confidence and Australia’s international reputation as a reliable energy partner,’’ she told The Australian Financial Review.
‘‘The new gas supply urgently needed to support Australia’s energy transformation can only be unlocked with regulatory certainty so businesses can invest with confidence in new projects.’’
While the federal and state governments have refused to explicitly name which companies were the subject of a push for development of unused fields, both Chevron and Santos hold licences on gas fields off the WA coast that have an application for retention ‘‘pending’’.
WA Premier Roger Cook said yesterday that while it was up to his federal counterparts to decide whether to extend retention licences to companies that were yet to develop offshore assets, he wanted to ensure his state’s energy security was maintained.
‘‘We can only do that if we continue to have a good supply of gas,’’ he said. ‘‘New gas supplies are important, and we’re encouraging all of those companies that have licences to exploit those gas fields to do so.’’
Major domestic manufacturers of chemicals, fertilisers and aluminium in WA are relying on a consistent supply of gas to continue operating. The state government’s vision for more local downstream processing of critical minerals also depends on viable energy supply.
During an inquiry into the state’s gas policy settings last week, former WA resources minister Bill Johnston said when he was in the ministerial role, he wrote to the Commonwealth urging it to push the operators from retention to production licences, putting a five-year deadline on their uses of the fields.
Mr Johnston, who is acting chairman of the inquiry, said there had ‘‘never been a better economic opportunity than right now’’ to develop gas assets, and questioned Ms McCulloch as to how they could be more viable in 15 years if a retention licence was granted.
‘‘That would be a big help for us because otherwise we are just left with one field, Browse, to solve our problems,’’ he said, referring to the development of the offshore gas fields.
A spokesman for the WA Mines and Petroleum Minister David Michael, who replaced Mr Johnston late last year, confirmed several retention lease renewals were under consideration by a joint state and Commonwealth authority.
‘‘The WA government is committed to ensuring that resources are developed within the parameters set by the Offshore Petroleum and Greenhouse Gas Storage Act to ensure the supply of gas for export and domestic use,’’ he said.
A spokesman for federal Resources Minister Madeleine King said the government would not provide commentary on offshore title decisions.
The parliamentary inquiry into WA’s domestic gas reserve released an interim report in February that warned the existing policy was not robust enough to ensure major offshore gas producers delivered adequate supply to the local market.