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Gas pipeline tariff increase shows long-term outlook for gas demand now in decline

A 33% hike to tariffs on Western Australia’s biggest gas pipeline in a recommendation by the WA Economic Regulation Authority (ERA) today marks a line in the sand for the state’s future energy priorities, according to the Conservation Council of WA (CCWA).

The increase on tariffs from January 1, 2026 will apply to the Dampier to Bunbury Gas Pipeline, which transports gas 1,600 kilometres from WA’s north-west, to Perth and the state’s south-west.

CCWA Executive Director Matt Roberts said the ERA report showed the long-term outlook for gas was in decline, despite the efforts of the WA Labor government to provide Woodside and the gas industry with unconditional support for decades to come.

He said the ERA report assumed a modest decline in demand for gas over the next five years despite significant increases in investment.

“Woodside continues to push the line that the extension of its North West Shelf gas export facility will help keep the lights on in Western Australia, but that claim is unfounded,” Mr Roberts said.

“Not only is the vast majority of Woodside’s gas exported overseas, this report suggests that in many industry circles, the transition away from gas as a primary energy source is much closer than Woodside would have us believe,” Mr Roberts said.

“This is also an example of how the oil and gas industry is playing a key role in increasing energy costs for Australians, while it focuses on growing profits from exporting gas to overseas markets.

“The report shows that without a rapid transition to renewables, West Australians will be left paying higher energy bills, while multinational companies like Woodside make big profits by damaging the climate and exporting our gas overseas.

“This isn’t about keeping the lights on in WA, or any other state or territory. It’s about generating revenue at the expense of our environment.

“Increased pipeline tariffs will likely translate to higher gas bills for both residential and business customers.

“The solution? It’s time for the government to set a renewable energy target and lead the way to a cheaper, cleaner future – not put their head in the sand and open the floodgates for new oil and gas projects that threaten our climate, environment, and public health.”

ENDS

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