The Western Australian government has greenlighted onshore gas exports by lifting a longstanding ban, leading to experts raising concerns that the move could potentially drive up greenhouse gas emissions.
The new policy, aimed at encouraging more gas development, allowed producers to export up to 20% of their gas until 2030.
The former ban was implemented by ex-premier Mark McGowan on the majority of onshore producers except the large Waitsia plant part-owned by Beach Energy, which could export half its gas, the Guardian reported.
Premier Roger Cook said a secure gas supply was crucial for transitioning to renewable energy and becoming a "global renewable energy powerhouse."
Furthermore, WA's opening of the onshore gas reserves for export has benefited mining billionaires. However, industry insiders say strict caps on international sales may restrict the move's impact.
According to the government, this move will help meet the domestic needs, ABC reported.
"Modelling shows that our state's gas supply is balanced over the next five years to 2030. We expect to produce enough gas to meet the needs of our economy," Cook said, while announcing the changes. "But beyond 2030 we need more gas coming into our system. By keeping 80 percent of gas for domestic use and allowing new gas projects to export a reasonable proportion over the next five years we will help stimulate development while WA's gas market is in balance."
WA Conservation Council executive director, Jess Beckerling, said the current move ignored a parliamentary inquiry recommendation, which suggested onshore gas exports should be prevented till the domestic market was supplied. The parliamentary inquiry had put the government at odds with notable business personalities Chris Ellison, Kerry Stokes, and Gina Rinehart.
"We've proven on the East Coast, when you do open the export tap to the world, that means domestic prices rise to meet international prices, which are generally higher," said Peter Kerr, of energy advisory ATA Consulting, who saw the decision as the government's attempt to find a balance between industry interests and energy security concerns. "So are you potentially exposing your local market to slightly higher gas prices? Absolutely."
However, he added, it was important to ensure that companies and their projects remained commercially viable.
