The report includes three key recommendations including the implementation of:

  • Strategic and operational plans to respond to gas supply disruptions;
  • Regulatory frameworks to assist in the development of gas contingency services in the electricity and gas markets; and
  • A range of gas market arrangements to improve the security, reliability and competitiveness of the domestic gas supply market.

The GSEMC was established by the Office of Energy following the disruption of Western Australia’s natural gas supply twice last year, once caused by an explosion on Varanus Island.

Mr Collier said “These events highlighted the need to develop strategies to avert future shortages and provide secure energy supplies to meet the growing needs of the community.

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“While it is not possible to ensure that disruptions to gas supply do not occur, the recommendations presented by the committee will help mitigate the potential impacts in the unlikely event of a further gas supply direction.”

“The Government has taken a strategic approach to ensure Western Australia is better prepared for any future gas disruptions while also providing secure energy supply to meet the growing needs of the community,” he added.

The Australian Petroleum Production and Exploration Association (APPEA) has said that the implementation of a Gas Bulletin Board (GBB) will improve information transparency and the Gas Statement of Opportunities (GSOO) will provide information for market participants.

APPEA believes that both the GBB and GSOO should be administered by an independent Western Australian specific entity with the relevant national authority. It should also be governed by a board of industry representatives and funded by the market participants who benefit.

According to the Western Australian Department of Mines and Petroleum, there is 136 Tcf of natural gas off the coast of northwest Western Australia, with new major discoveries being made on a daily basis.

APPEA has said that Devil Creek Development Project and the Gorgon LNG Project will boost the state’s gas supply by 20 per cent and 30 per cent respectively.