Premier Roger Cook has encouraged oil and gas players with licences to develop big reserves off WA’s coast to “do something”, as the State stares down a looming gas deficit.
The Australian Energy Market Operator has warned WA could face a gas shortage as early as this year if new supply isn’t shored up in time, a predicament that industry has also claimed will push up prices.
The Premier on Sunday said new gas supplies “are important” and maintained the fuel would be needed as the State shifts away from coal-fired power stations and works to bring renewable energy sources online.
“Certainly, the opportunity to realise new sources of gas is an important opportunity for us to continue on the energy transformation. We will need has as a smoothing fuel to make sure that we can maintain stability in our grid,” he said.
“New gas supplies are important. And of course, we’re encouraging all those companies that have licences to exploit those gasfields to do something.”
But he did not go so far as to say those licences should be revoked if major oil and gas players didn’t take action.
“I’ll leave that up to the Commonwealth to to decide,” he said.
“Obviously, what we want to see is Western Australia’s energy security maintained and we want to continue to play an important role in decarbonising the energy needs of our southeast Asian partners.
“We can only do that if we continue to have a good supply of gas.”
Former Energy Minister Bill Johnston, who had been acting as committee chair for a recent Parliamentary gas inquiry, earlier this month questioned the speed in which developers were building up new projects.
He said the State Government had written to the Commonwealth arguing five fields off WA should be knocked back from retention status and instead given five years to get into production.
Australian Energy Producers boss Samantha McCulloch has said the oil and gas industry wants more regulatory certainty before it pushes ahead with any new developments.