In 2020, Kerry Stokes-backed Beach Energy successfully lobbied the WA Government to allow the export of WA's domestic gas reserves from the Waitsia project via Woodside's North West Shelf export terminal.
The project is delayed and is already diverting up to 15% of gas used in WA's local market to meet its export contracts.
The Australia Institute warned of precisely this situation last August.
The analysis was released publicly and sent to all WA Labor parliamentarians. The Australia Institute also briefed then-Energy Minister Reece Whitby and other MPs. A briefing on the issue for all government MPs was cancelled at the last moment by the government.
Woodside's North West Shelf gas export terminal requires an enormous amount of gas to meet its export capacity, but has severely insufficient offshore gas reserves to feed it.
This has created a huge incentive for Woodside and companies with licenses over WA's domestic gas reserves to lobby for permission to export WA's domestic gas, as they have already successfully done in this case, because they can receive far higher prices than in the domestic market.
Australia Institute research shows the WA government's decision to allow this situation risks domestic gas shortages and rising energy prices. The Federal government's decision to allow Woodside to extend the operations of North West Shelf – despite Woodside not identifying sufficient offshore gas to feed it – compounds the situation and extends the risk for another 45 years.
"The Western Australian and Australian governments have put the interests of Woodside and other gas companies ahead of the interests of Western Australians, and have endangered WA's domestic gas supply, said Mark Ogge, Principal Adviser to The Australia Institute.
"Allowing Woodside to keep operating its voracious North West Shelf gas export terminal until 2070, without their own offshore gas, creates a massive incentive for gas companies to try and get their hands on WA's domestic gas, because they can get far higher prices when they sell it overseas.
"Woodside's North West Shelf is a massive vacuum that is already sucking up vast amounts of WA's domestic gas, and will almost certainly lead to shortages and higher energy bills for Western Australians.
"The WA government has shown an alarming tendency to cave into gas industry lobbying and allow the export of WA's domestic gas reserves.
"Our governments seem to have forgotten it is elected to represent Australians, not multinational gas corporations.
"The WA government can't say it wasn't aware of the consequences of their decisions to allow Woodside to export WA's gas. The Australia Institute was shouting it from the rooftops.
"They knew and they chose to allow it anyway".
