Fed’s primary role in domestic gas reservation must be to not undermine WA

The Shadow Minister for Energy Dr Steve Thomas says the Federal Government’s exposure draft of their Domestic Gas Reservation Bill allows the Albanese Labor Government the freedom to look after Western Australia and our own gas reservation system, but it also allows them to undermine it.

“The first principle of any federal policy for domestic gas must be that it not undermine our existing system” Dr Thomas.

“The exposure draft may allow the Federal Government to do the right thing by WA, but it does not require it to do so.

“And given the history of the Albanese Government on issues like the GST and capital gains tax I have little faith that they will change their spots to WA colours now.

“The Commonwealth should either support Western Australia fully by legislating certainty or butt out of our business.

“They are happy enough to exclude the Greater Sunrise special regime area near Timor-Leste to provide certainty when it suits them.

Dr Thomas said that sections 17, 19 20 and 23 of the exposure draft gave the Commonwealth the flexibility it might need to vary the Domestic Supply obligations of WA producers if it best served the market circumstances.

“Western Australian gas suppliers have managed to get to peak usage of around 12% of the 15% state gas reservation policy, but it has taken us twenty years to get there” Dr Thomas said.

“Messing around with our long-established domestic market is of no benefit to anyone.

“Section 23 of the draft specifically allows the Commonwealth to vary the DSO if it is appropriate to support both ends of the market, but does not require them to do so.

“The risk remains that interference by the Commonwealth will put at risk the stability of the industry here in Western Australia.”