WA’s peak resources lobby has written to all WA Federal MPs and senators calling on them to get behind the push to exempt WA from new gas reservations laws.
In his letter, Chamber of Minerals and Energy boss Aaron Morey says without amendments to the Domestic Gas Reservation Bill, some $330 million worth of new gas projects could be at risk.
“The Bill was designed to fix the east coast gas market,” Mr Moorey says in his letter.
“Western Australia’s market isn’t broken.
“For 20 years, our own reservation policy has delivered a balanced market with lower and more stable prices.”
WA has had a 15 per cent gas reservation policy for two decades.
But the Albanese Government proposes a 20 per cent gas reservation policy — which would force large gas exporters to reserve 20 per cent of extracted gas for the domestic market.
Whether WA would be part of this new policy would be at the discretion of the Federal Government.
“As drafted, WA’s exemption rests on significant ministerial discretion,” Mr Morey tells Federal MPs.
“That leaves more than 25,000 petajoules of undeveloped WA gas at risk, at a time when AEMO forecasts that 80 per cent of WA’s gas will have to come from new projects by 2045.
“Developing that gas would return around $89 billion in taxes to the Australian Government, enough to pay for its plan to double the Navy’s surface fleet, without adding a dollar to debt and still leaving $35b left over.”
The CME proposed the following changes to the Domestic Gas Reservation Bill:
1: Where a State scheme substantially achieves the Bill’s objectives, the Minister must set the domestic supply obligation for that market to zero.
2: The Energy Minister should be consulted on that decision, not have to be satisfied..
3: An exemption should run indefinitely, or for at least 40 years, and only be revoked on grounds tied to the Bill.
4. The exemption must clearly cover projects that reach final investment decision after December 22, 2025.
5. Export licences should be transferable, and the Minister’s veto over changes in control should be removed.
In an open letter to Prime Minister Anthony Albanese, Hancock Energy chief executive Stuart Johnston and Strike Energy managing director Shelley Robertson warned the PM of the risk to new developments in the Perth Basin from the Domestic Gas Reservation Scheme.
WA’s peak resources lobby has written to all WA Federal MPs and senators calling on them to get behind the push to exempt WA from new gas reservations laws.
In his letter, Chamber of Minerals and Energy boss Aaron Morey says without amendments to the Domestic Gas Reservation Bill, some $330 million worth of new gas projects could be at risk.
“The Bill was designed to fix the east coast gas market,” Mr Moorey says in his letter.
“Western Australia’s market isn’t broken.
“For 20 years, our own reservation policy has delivered a balanced market with lower and more stable prices.”
WA has had a 15 per cent gas reservation policy for two decades.
But the Albanese Government proposes a 20 per cent gas reservation policy — which would force large gas exporters to reserve 20 per cent of extracted gas for the domestic market.
Whether WA would be part of this new policy would be at the discretion of the Federal Government.
“As drafted, WA’s exemption rests on significant ministerial discretion,” Mr Morey tells Federal MPs.
“That leaves more than 25,000 petajoules of undeveloped WA gas at risk, at a time when AEMO forecasts that 80 per cent of WA’s gas will have to come from new projects by 2045.
“Developing that gas would return around $89 billion in taxes to the Australian Government, enough to pay for its plan to double the Navy’s surface fleet, without adding a dollar to debt and still leaving $35b left over.”
The CME proposed the following changes to the Domestic Gas Reservation Bill:
1: Where a State scheme substantially achieves the Bill’s objectives, the Minister must set the domestic supply obligation for that market to zero.
2: The Energy Minister should be consulted on that decision, not have to be satisfied..
3: An exemption should run indefinitely, or for at least 40 years, and only be revoked on grounds tied to the Bill.
4. The exemption must clearly cover projects that reach final investment decision after December 22, 2025.
5. Export licences should be transferable, and the Minister’s veto over changes in control should be removed.
In an open letter to Prime Minister Anthony Albanese, Hancock Energy chief executive Stuart Johnston and Strike Energy managing director Shelley Robertson warned the PM of the risk to new developments in the Perth Basin from the Domestic Gas Reservation Scheme.