Barnett defends WA’s gas reservation policy

PERTH (miningweekly.com) – Western Australian Premier Colin Barnett has defended the state’s gas reservation policy, saying a similar approach in different states could assist with the development of coal seam gas (CSG) resources.

Speaking at the opening of the eighteenth liquefied natural gas (LNG) conference, in Perth, on Tuesday, Barnett noted that gas reservation had been in place in Western Australia since the 1980s, and had more recently been defined as an equivalent of 15% of LNG exports to be made available to the domestic market.

“The philosophy is simple in that the gas belongs to the people and, therefore, the local economy should have fair access to some of the gas produced by LNG export projects. A more subtle variation is that public support for LNG projects is in part dependent on tangible benefits to the local economy.

“Tax revenue alone is not enough,” Barnett said.

The Premier noted that with the gas reservation policy in place, LNG in Western Australia enjoyed strong public support.

“This is not the case for the CSG projects on the East coast. Perhaps the environmental protest there would be more tempered if these projects also supplied gas to the local economy rather than being fully exported.

“In fact, public opposition has been exacerbated by the projects having to purchase additional gas to meet export contracts, thereby causing local supply shortages and higher domestic prices.

“The industry needs supporters, not opponents,” Barnett said.

He pointed out that without the countervailing benefits case, the New South Wales and Victorian governments had imposed a ban on further CSG exploration.

“The situation is now in a stalemate. The failing was not to make a case for gas or to back it up with tangible evidence.”

Barnett said that in the current environment, it was no longer sufficient to simply say that mega LNG projects were good for the economy, rather it was necessary to show direct benefits to deal with the inevitable protest on a detailed and factual basis, and to resolve any negatives.

“The companies also need to get involved. It is not enough to leave it to politicians to fight the good fight. Your voice also needs to be heard.”