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Proposed federal gas reservation scheme could ensure WA policy functions as intended

The Conservation Council of WA (CCWA) has said revisions to the Federal Government's proposed domestic gas reservation laws provide a pathway for WA’s own unlegislated scheme to be properly enforced. 

Section 27(3) of legislation introduced to Parliament today states: “The Minister may only make a Domestic Supply Obligation (DSO) adjustment determination for a licence holder for a domestic gas market for a regulated period or extended period for the reason set out in paragraph 26(1)(b) if the Minister is satisfied that the demand and supply conditions for natural gas in the market are such that it is appropriate to make the determination.” 

CCWA Executive Director Matt Roberts said the legislation introduced today has strengthened an earlier draft version to mean the Minister must be satisfied that the state scheme is actually working before any WA exporters can be exempted from the federal scheme. 

“We’ve consistently called for the federal reservation scheme to apply alongside the State Government’s policy, to ensure big gas exporters are meeting their obligations to WA homes and businesses, and we’re glad the legislation proposed today provides a pathway for that,” Mr Roberts said. 

“Now, the federal government needs to strengthen the legislation further to make clear the responsibility on each individual gas exporter to meet their obligations, not just the sector as a whole. The legislation can be further tightened to ensure gas exporters don’t weaponise it or find loopholes. 

“Western Australia has more than enough gas to responsibly manage the renewable energy transition, and we are pleased that the Albanese government is putting laws in place to ensure existing big gas projects do their part, instead of enabling multinational exporters like Woodside to continue their profiteering. 

“The Federal Government must make sure WA’s gas reservation scheme is properly enforced. 

“Demand for gas from our trading partners is declining, and we already have more than enough gas for our own use at home.  

"It’s becoming clearer every day that there’s no legitimate justification for new gas proposals like Browse drilling at Scott Reef or Valhalla fracking in the Kimberley — beyond multinational companies like Woodside wanting to boost their corporate profits. The WA government can no longer maintain the illusion that new gas projects are necessary for WA’s future gas needs. 

"This legislation, if done right, presents an opportunity to hold big gas exporters to account, keep prices low for Australians, and accelerate our transition to renewable energy. 

“What we need from our government now is some leadership and action around how the benefits of the renewable transition will be shared. Australian workers deserve to know the government is planning for our future and not just looking to the next election cycle.”  

ENDS 

Media contact: John Cooke – 0433 679 780 

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