Western Australian Gas Users Urge Stronger Rules for National Reserve Plan

Western Australian gas users are urging the Albanese government to include stronger transparency and enforcement measures in its proposed national gas reserve scheme. The plan would require LNG exporters to set aside 20 per cent of production for domestic use starting mid-2027. Labor is expected to release further consultation details by the end of this week.

Western Australia's existing 15 per cent domestic reserve policy was introduced in 2006. Commitments are secured through state agreements and project approvals that are not disclosed publicly. A 2024 WA parliamentary inquiry found companies delivered about eight per cent of domestic gas on average relative to exports.

The DomGas Alliance reported that Woodside's Pluto LNG project supplied just 3. A DomGas spokesman said the WA government lacked strong compliance mechanisms. He called for real-time transparency on how producers meet domestic gas obligations.

Woodside said flexible delivery over a project's lifetime should be part of any national scheme. The company said discussions with the WA government about modernising the Pluto agreement are ongoing. Prime Minister Anthony Albanese said last month the national plan was building on the success of the WA model.

Resources Minister Madeleine King described the WA policy as nation-leading. Grattan Institute senior fellow Tony Wood said the detail of any reservation scheme is critically important. Australian Energy Producers chair Cecile Wake said the plan would create a disincentive to new gas investment.