In August 2020, the WA government approved the export of onshore domestic gas via Woodside’s North West Shelf (NWS) LNG export terminal for five years, equivalent to almost a quarter of WA’s gas use.

Wholesale electricity prices in WA’s gas-dependent grid have also tripled. Much of the cost has been absorbed by WA taxpayers though household rebates and subsidies to Synergy.

The increase echoes the east coast experience where the decision to allow the export of onshore gas tripled within a few years, devastating manufacturing, driving up electricity prices and increasing household energy bills.

The proposed 50-year extension of Woodside’s NWS export terminal with access to WA domestic gas onshore reserves would lock in exposure to global prices indefinitely.

“Just another example of what the WA mining industry wants, the WA government gives – and (separately) what the WA government wants, the Federal government gives,” said Saul Eslake, one of the nation’s most respected independent economists. 

“It is astonishing the WA government caved into lobbying from the gas industry and repeated the mistake of east coast governments a decade ago, exposing the WA domestic gas market to global prices,” said Mark Ogge, Principal Adviser at The Australia Institute.

“Gas producers are making windfall profits from higher gas prices paid by Western Australian households and businesses through their taxes and higher energy bills.

“The McGowan government’s decision to appease the gas industry and allow the export of WA’s domestic gas reserves is costing WA businesses and households dearly. Let’s hope the Premier Cook doesn’t repeat the mistake.

“If the government approves Woodside’s proposed 50-year extension of their NWS export terminal, they will lock in WA’s exposure to high global gas prices for decades.”