The decision complicates the Barnett Government's attempt to rescue something from the wreckage of the decision by Woodside Petroleum and its joint venture partners to walk away from the controversial $40 billion land-based LNG hub, amid spiralling costs.
As part of this drive, Premier Colin Barnett yesterday reintroduced legislation into the WA Parliament to help develop massive gas reserves in the onshore Canning Basin, which are considered a possible Plan B for James Price Point-based exports.
- Legislation will allow for the development of the Canning Basin gas
- Domestic gas project the first priority
- Will ensure gas supplies for State’s future energy needs
- The agreement, which is for an initial term of 25 years, with a possible 25 years extension, will:
- encourage investment in a significant exploration and evaluation program to determine the technical and economic viability of the natural gas resources
- enable the Government to set firm timetables for development of gas discoveries
- ensure domestic gas production and delivery occurs before any gas is supplied for export
- ensure an amount equivalent to 15% of any gas processed for export is reserved for domestic use
- make available for sale related products such as ethane, propane, butane and condensate, for the possible manufacture of chemicals or use as transport fuel
- defer relinquishment conditions of the Petroleum and Geothermal Energy Resources Act 1967 for five key permits
- facilitate the development of pipelines and other infrastructure to deliver gas to the State’s domestic gas network
- This Bill was also introduced to Parliament in November last year but lapsed with the prorogation