Alcoa questions McGowan government’s exemption for Stokes gas play
Western Australia’s largest gas consumer Alcoa has questioned aspects of the state government’s controversial decision to provide the Kerry Stokes-backed Waitsia gas project with an exemption to an international export ban.
Appearing before a state parliamentary inquiry in Perth on Wednesday, Alcoa energy director Nick Eaton said allowing more onshore gas producers to export their product overseas would introduce additional risk into the domestic market ahead of a predicted shortfall.
Mitsui and Beach Energy’s Waitsia gas project in WA.
While the state government has issued a ban on the export of onshore gas in WA, it gave the Waitsia gas project – backed by Mr Stokes’ Beach Energy – an exemption to the domestic reservation in 2020.
Mr Eaton said while the Waitsia project had an obligation to provide domestic gas, it had been pushed back to the “risky end” of the project.
“Particularly now, with a little hindsight that there is a shortfall now upon us, why they aren’t providing the 15 per cent [domestic supply] while the project is on is a question mark in our mind,” he said.
“Probably, equally, is the risk that the domestic market now bears as a result of the domestic cap obligation being pushed to the back end of that project.
“I’m not going to make a comment as to whether I think that was the right decision, giving that exemption for that particular project, or not.”
Mr Eaton rejected the proposition put byStrike Energy last week that allowing more onshore gas to be exported would result in additional international investment and more product being produced.
Representatives from Chevron also faced the inquiry on Wednesday, and told the committee that the state’s current domestic gas policy, which requires offshore
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