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Accelerate new gas projects to fuel WA’s economy

Industry efforts in Western Australia to boost gas supply have eased concerns around potential shortfalls, but fast-tracking new gas projects remains critical to ensure reliable energy for the state’s households and industry.

The Australian Energy Market Operator’s (AEMO) 2024 Western Australian Gas Statement of Opportunities (GSOO) today confirmed the state’s gas industry has led an improved near-term gas supply outlook compared to last year, with sufficient supply forecast through to 2027.

Caroline Cherry is the WA Director of the Australian Energy Producers.

“The GSOO confirms the industry has stepped up to provide more gas to the WA domestic market,” Australian Energy Producers WA Director Caroline Cherry said.

“However, a forecast increase in WA’s gas consumption from 2027 reinforces the need for more investment in new gas supply.

“The GSOO forecasts a risk of annual supply gaps that will require new sources of supply from 2030 onwards as a result of increased demand from industrial and commercial users coinciding with depletion of existing gas fields.”

Ms Cherry said additional gas supply was critical to growing WA’s mining and manufacturing industries and to continue to provide reliable and affordable electricity, with gas generating 60 per cent of WA’s power.

“Getting the state’s energy policy right to incentivise investment in exploration and project development will be key to securing WA’s long-term energy needs,” Ms Cherry said.

“The GSOO identifies fast-tracking proposed projects and new gas fields as an action to eliminate the risk of a supply shortfall before 2030.”

AEMO reinforced “These gas fields could be developed as separate or expansion projects to take advantage of the LNG export incentive under the updated Western Australian Domestic Gas Policy”.

“The industry looks forward to continuing to work with the WA Government to unlock new supply and ensure affordable and reliable energy for WA homes and businesses,” Ms Cherry said.

 

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