Removal of Gas Reservation Policy Short-Sighted, Ignores Growing Domestic Needs

Thursday, 1 May 2014

Greens Member for the Mining and Pastoral Region Robin Chapple MLC says he is outraged by the Economic Regulation Authority’s call for the state government to remove the domestic gas reservation policy.

The Australian Petroleum Production and Exploration Association, an organisation representing the oil and gas industry, has backed these calls.

The domestic gas reservation policy requires LNG producers in WA to make 15% of production output available to the domestic gas market.

“To flog off all our gas is short term suicide,” Mr Chapple said.

 “We’re obsessed with expanding and maximising our energy exports at the potential detriment of our growing domestic needs, and the needs of future generations.”

The DomGas Alliance commissioned an economic report that shows Western Australia will require additional production of 1100 terrajoules per day of gas by 2014-15 to meet new and replacement domestic demand.

Mr Chapple pointed out that our state is already the most gas-dependent economy in Australia, with natural gas supplying more than half of primary energy requirements.

“We have an immediate need to ensure supply as this demand is already equivalent to the total size of the existing domestic gas market,” he said.

“Removal of this policy is a short-sighted cash-grab in favour of big business that will do nothing for the long term energy security of our state.”

For more information please contact Robin Chapple on 0409 379 263 or 9486 8255

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