Partial supply from the Varanus Island gas processing plant, one of only two in the state, is not expected to resume until the end of winter, while full restoration of gas supplies is unlikely to occur until summer.

The explosion on the remote island off WA’s North West coast cut the state’s gas supplies by up to one third. For a state that continues to be the economic powerhouse of the nation – generating wealth, investment, jobs, and opportunities for all Australians – the incident is a major blow for business and industry across the state.

Business relies on a secure and certain energy system in order to keep their doors open. Already many businesses have been forced to cease production and stand down staff in order to cope with the loss of supply. The impact on individual businesses and the broader Western Australian economy are considerable.

The Chamber of Commerce and Industry of Western Australia (CCI) estimates the gas crisis has already cost Western Australia’s business and industry $2.4 billion in lost turnover. This figure is expected to rise to $6.7billion by year’s end.

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The calculation was extracted from the results of several comprehensive surveys undertaken by CCI of the Western Australia’s business community in the days after the state’s gas supplies were cut by up to one third.

The results confirmed that the gas crisis is hurting a large number of businesses and industries, their employees and the state’s economic performance.

Almost half of the respondents to each of the surveys said they have been directly or indirectly affected by the gas outage, with production down nearly one third on average across all industry sectors.

Business has told CCI they are concerned that the longer it takes to restore gas supplies from Varanus Island, the greater the impact will be on their operations, their employees and the economy.

Nearly half of respondents said they expect to be negatively affected if the situation isn’t rectified within three months and almost one quarter of businesses fear they will be forced to shut down if the crisis runs for a year.

Pleasingly, some additional gas is finding its way to businesses and industries in need as a result of the establishment of a transparent online gas bulletin board, increased electricity production from coal fired power stations, the ongoing efforts by business and households to cut their energy use, and increased gas production from the North West Shelf Joint Venture.

A large number of businesses have heeded requests to turn off all unnecessary lighting in a bid to free up some gas for businesses and industries in need. City skyscrapers have turned off their neon signs, homes have been urged to brave the winter chills without their heaters, and people have been asked to take shorter showers.

Every molecule of gas conserved by Western Australians can be redirected to business and industry in need.