Western Australian Minister for Energy Peter Collier said that a co-ordinated approach was ‘critical’ in order to meet the state’s energy needs over the next 20 years.

“An important component of the SEI is to develop future energy demand and supply scenarios for Western Australia so that we can understand the nature and scale of the challenge in meeting our future energy needs.

“The SEI will recommend a range of initiatives for the short, medium and longer terms to guide government, policy makers and stakeholders in achieving the state’s strategic energy goals,” Mr Collier said.

The Australian Petroleum Production & Exploration Association (APPEA) has said that the oil and gas industry remains critical to delivering reliable and clean energy for Western Australia and the Asia Pacific.

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APPEA Western Australian Director Tom Baddeley said “We need to make sure the SEI delivers the policy settings that encourage further investment, attract new market entrants and deliver diversity of supply. It is important that the SEI is market-based and supports sustainable and efficient economic development.

“We also need to look at the whole of the energy supply chain and identify the barriers to investment, including capacity constraints on gas transmission pipelines,” Mr Baddeley said.

The issues paper aims to develop a clear framework in the face of challenges including the dependence on a single major gas transmission pipeline and two domestic processing plants.

Written submissions on the issues paper will be accepted until the end of February 2010, before a draft directions paper is released in April. The SEI is expected to be completed by the end of 2010.