New wholesale contracts needed to shore up Western Australia’s domestic gas supplies

3 min

The Australian Energy Market Operator (AEMO) has today released the 2017 Western Australian Gas Statement of Opportunities (WA GSOO), which provides an assessment of the WA domestic gas market for the outlook period 2018-2027.

The report has found that Western Australia’s domestic gas market is well-supplied until 2020, however, new wholesale contracts will be needed to prevent a tightening of supply beyond this period.

“Our base case scenario forecasts have highlighted a tightening of the market from around 2021-2023 as supply contracts begin to expire and some existing domestic gas facilities face reserve depletion,” said AEMO’s Managing Director and Chief Executive Officer Ms Audrey Zibelman.

The report notes the important role of Western Australia’s domestic gas policy, which ensures 15% of total Liquefied Natural Gas (LNG) production is reserved for domestic use.

“While Western Australia’s domestic gas policy ensures gas availability for domestic consumption in the long term, the commercial terms of supply are left to the market to negotiate, which includes price and timing.

“This means there is some uncertainty around the timing of gas reserved from LNG projects supplying the domestic gas market in the medium term,” said Ms Zibelman.

Other key findings in the WA GSOO have shown the ongoing growth of Western Australia’s gas sector, and the increase in market competition. Over the last four years, the demand from Western Australia’s domestic gas market has grown from 985 terajoules to 1,029 terajoules a day, which has coincided with a further increase in gas storage capacity, jumping from 15 petajoules in 2013, to 60 petajoules in 2017.

The number of active wholesale gas sellers has also increased from seven in 2013, to 19 sellers in 2017, and a further three new retailers approved to enter the retail market from 2017, bringing the total to five.

“In 2016-17, we saw over 92,000 customers switch gas retailers as competition continues to increase in the evolving market,” said Ms Zibelman.



For the full report, please click here.

To view the related infographic, please click here.

For a PDF version of this media release, please click here.



For more information: AEMO Media | Mobile: 0409 382 121 | Email:

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