Government raises possibility of shipping WA gas east

Western Australian gas could be transported to the east coast to lower energy prices, according to Federal Treasurer Josh Frydenberg.

According to The West Australian, Mr Frydenberg and the government are investigating ways for the east coast market to access WA gas, which can be up to $7 cheaper than current levels.

“West Australians get access to gas that is cheaper than on the east coast of Australia and any opportunities to ensure there are lower gas prices on the east coast of Australia we will investigate,” he said.

“There was work done previously looking at infrastructure between the east and west coast.”

“People have talked about LNG import terminals. There are a whole lot of ideas that have been talked about in order to bring some of that west coast gas to the east coast.”

Last week, in order to pass its tax cuts, the government made a deal with the Centre Alliance to investigate a gas reservation policy and try to bring down prices, with Centre Alliance Senator Rex Patrick saying at the time the two groups were “close” to having a plan in place.

WA gas prices are not linked to the east coast market and benefit from an abundance of supply.

Ideas previously floated to link the east and west have included the construction of a mammoth gas pipeline, although no solid plan for this has ever been put forward.

Earlier this year, former WA Premier Colin Barnett called an east-west pipeline “an absolutely doable project” and said “it would solve the [gas] crisis”.

Companies such as Woodside have previously opposed the idea.

If you have news you would like featured in Gas Today contact Assistant Editor David Convery at dconvery@gs-press.com.au

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