How?
First, a bit of history.
Until 2020, Western Australians didn’t experience the energy price pain of their east coast cousins because all its domestic gas reserves were reserved for the domestic market. Up until then, all the gas WA exported came from offshore reserves, mostly in Commonwealth waters. That changed four years ago, when the WA Labor government allowed the export of onshore gas.
Why did the WA Labor government change the policy?
Good question. Woodside started running out of offshore gas for its giant North West Shelf export terminal, and decided to turn to the domestic reserves to keep feeding it. But it needed some help.
Enter media magnate and fossil fuel investor Kerry Stokes and his company Beach Energy. Beach Energy owned the licence for some of WA’s onshore gas reserves and wanted to export that domestic gas because gas sold on the international market fetches higher prices than it does domestically.
Beach Energy made a deal with Woodside to export its domestic gas. And then it used its considerable influence to lobby the Western Australian government to let them do it. In August 2020, while most attention was on the pandemic and the border closures, then-premier Mark McGowen announced Woodside could export WA’s domestic gas for five years – and a lot of it … the equivalent of around a quarter of the total gas used in WA!
So, what is the problem?
Woodside now wants to extend the deal for another 50 years. And that’s terrible news for Western Australians.