Domestic gas supplied to Western Australia

QUESTION

FACT

The Western Australian Government has a policy in place to support local gas supply, known as the Domestic Gas (Domgas) Policy. Woodside continues to meet its obligations and act in the spirit of that policy.

Since 1984, Woodside has supplied more than 3,900 petajoules of domestic gas to Western Australia.¹ That's the equivalent of providing the energy used by 74,000,000 homes for an entire year.² 

In its 42 years of operation in Western Australia, Woodside has supplied to the state's market the equivalent of 37% of the company’s liquefied natural gas (LNG) export volumes. Before the Domgas Policy was formalised and until 2017, Woodside supplied domestic gas equivalent to approximately 50% of LNG export volumes from the North West Shelf Project.

Woodside has been supplying reliable, competitively priced domestic gas to Western Australia since 1984 and will continue to do so.

The Domgas Policy requires exporters of LNG from Western Australia to withhold a certain quantity for domestic supply. The policy was formalised in October 2006 and has three pillars³:

1. Reserving domestic gas equivalent to 15% of LNG production from each LNG export project.
2. Developing and obtaining access to the necessary infrastructure (including a domestic gas plant, associated facilities and offshore pipelines) to meet domestic gas commitments.
3. Showing diligence and good faith in marketing gas to existing and prospective consumers.

The policy states it will be applied flexibly by the State Government, over the life of a project and not year-on-year.

^{1 In Woodside’s own capacity and not as operator of a joint venture.}

^{2 www.energy.gov.au/sites/default/files/2016-australian-energy-statistics-info3.pdf.}

^{3 www.wa.gov.au/government/wa-domestic-gas-policy.}