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Western Australia’s peak mining and energy body remains firm that the state should remain separate from a national gas reservation scheme after the federal government released the proposed legislation for consultation.
The Domestic Gas Reservation Bill 2026 aims to establish Australia’s first national gas reservation policy to secure local supply for Australians and put downward pressure on domestic prices.
The scheme requires exporters to supply a portion of the gas they produce to the domestic market, with the initial proposal looking to reserve up to 20 per cent of gas exports.
However, Chamber of Minerals and Energy WA chief executive Aaron Morey believes the current state government policy remains the best option for West Australians.
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Under legislation set out by the state government two decades ago, WA gas exporters are currently required to provide a 15 per cent proportion of their exports to the domestic market – although that figure is set over the life of a project, not an annual designation, which remains a point of contention.
Morey said WA had the balance right in its domestic scheme.
“We remain absolutely certain that the best thing for Western Australia is for it not to be included in this scheme,” he said.
“[The WA policy] is a scheme that has flexibility at its heart, and that has resulted in a set of outcomes that has worked for everyone.”
Federal Resources Minister Madeleine King said under the proposed scheme, domestic supply obligations must be met in the same market as the export facility.
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“An eastern exporter cannot meet their obligations by selling gas into the western market,” she said.
“In a market that is well supplied, the domestic supply obligation can be reduced. For example, if the western market were found to be well supplied, it would be possible for discretion to be applied to reduce that obligation to zero.”
King said WA’s scheme was about ensuring the state was well provided for in terms of gas for households, but also manufacturing and refining.
“Different providers there provide different amounts of gas and that’s all agreed with the state government,” she said.
“If the state government is satisfied with that because it’s their obligation, they’ve taken that obligation earlier than anyone else to make sure that their citizens and their industry is supplied with gas.”
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However, Greenpeace Australia Pacific WA campaigns lead Geoff Bice said the gas industry had been getting away with “daylight robbery” in WA for years.
“If the federal domestic reservation requirements are not made to apply here it is a major missed opportunity to rein them in,” he said.
“If the federal government is not going to keep Woodside and the WA gas industry accountable, it is incumbent on the WA government to tighten its rules.
“The WA government needs to get a fair deal for West Australians and rule out risking pristine environments like Scott Reef and the Kimberley for unnecessary gas expansion.”
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A state government spokesperson said WA’s approach to domestic gas has worked for years to secure a portion of exports for WA households and businesses.
“We have consistently said to the federal government that they should carve our successful policy out of their scheme and not do anything that undermines investor confidence in the new projects that will meet our future domestic gas needs,” the spokesperson said.
“We don’t want a policy designed to solve a problem on the east coast unintentionally costing jobs in WA.
“We are carefully examining the exposure draft released today and consulting with industry.
“We will respond in a considered way, and we will continue to put WA jobs first.”
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Michael Philipps is a producer and reporter with WAtoday.AdvertisementAdvertisement