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Marion Rae

Domestic gas inquiry gives itself more time on deficit

Climate advocates say WA's policy settings have encouraged an overbuild of gas export capacity. (Joe Castro/AAP PHOTOS)

The last-minute postponement of a Western Australian gas inquiry's final report has fuelled demands for an explanation to parliament amid fears of undue industry influence.

"I have serious concerns about why the public release of this report has been scrapped at the 11th hour. From the outside it looks dodgy," WA Greens MLC Brad Pettitt said.

Due to be released on Thursday, the state parliamentary Economics and Industry Standing Committee has now delayed its recommendations on the future of the state's domestic gas reservation policy that has - so far - helped WA avoid an East Coast-style gas crisis.

"This inquiry will deliver decisions that impact some of the most powerful companies in Western Australia, companies who have very high-powered lobbyists working for them including former members of this government and even the former premier," Dr Pettitt said.

Opposition spokesman for energy Steve Thomas agreed the delay was concerning and said any more could result in the government responding to the report during next year's election period.

"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," he said.

Domestic gas supply.
Opponents have rejected suggestions of a domestic gas shortage in Western Australia. (Dan Peled/AAP PHOTOS)

Dr Pettitt called on Premier Roger Cook to address state parliament to explain why the release of the report has been delayed until August 15.

Tight conditions are forecast for WA's domestic gas users, with demand outstripping supply from big export-focused producers.

But critics have dismissed the domestic gas shortage as a "myth", saying an expansion of liquefied natural gas (LNG) production is at odds with decarbonisation and climate goals.

A report by Climate Safe Solutions and clean energy advocacy body Sustainable Energy Now found policy settings have encouraged an ongoing "overbuild of LNG export capacity", which they say poses a significant risk to WA's strategic and economic interests.

"We argue that a far better perspective for policymakers to adopt is that the market is facing unsustainable and economically harmful levels of demand," Climate Safe Solutions director Piers Verstegen said.

A new policy approach could include replacing gas demand with utility-scale renewable energy, a moratorium on expansion and extensions of existing LNG facilities and prioritising some critical gas use that supports rapid decarbonisation.

Successive WA governments have quarantined 15 per cent of production from massive offshore gas fields for locals - mostly for industrial use, as households represent a fraction of the state's gas market.

Since a deal was formalised with LNG producers almost 20 years ago, there has been no shortfall of domestic gas in the state. 

More recently, the policy was updated to effectively reserve 100 per cent of onshore production for domestic use, which producers say is stifling development.

Regulators forecast a domestic gas deficit for WA between 2024 and 2029, and say the supply would continue to decline until new gas comes online from Woodside's Scarborough gas project and the Perth Basin.

The WA inquiry's interim inquiry report in February found the domestic gas reservation policy was "no longer fit for purpose" and that there was a case for government intervention.

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