Australia Opens Up Onshore Gas Reserves to Exports

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Australia Opens Up Onshore Gas Reserves to Exports

In a significant policy shift, the Western Australia state government has announced that industrialists, including mining billionaires, will now have the opportunity to export gas from onshore reserves, a privilege previously restricted. The government's decision to allow onshore gas projects to export 20% of their production until 2030, with a requirement to reserve 100% for the local market thereafter, marks a shift from the former ban on onshore gas exports implemented in 2020 under former Premier Mark McGowan.

The revised policy is seen as a strategic move to balance the need for domestic gas supply with the potential benefits of exporting to the international market. This decision has stirred mixed reactions among industry players, with some welcoming the change as a means to stimulate development while ensuring adequate domestic supply, while others caution that increasing overseas exports could lead to higher gas prices domestically. The government emphasized the importance of finding a balance between stimulating development and maintaining affordable energy prices, particularly as the state works towards achieving net-zero emissions and keeping the economy strong.