The importance of gas supply
Secure and affordable gas supply is critical for Western Australia and underpins jobs, investment and economic growth in the State.
Western Australia is the most energy and gas-dependent economy in Australia and consumes more natural gas than any other state, despite its relatively small population. In 2015–16, WA’s total gas consumption accounted for approximately 37% of Australia’s total gas consumption. Almost half the gas in WA is consumed for electricity generation. Another 29% is consumed by the industrial and minerals processing sector, with big industrial and mining users making up most of the remaining gas consumption.
Demand for gas will continue to grow. Additional supplies of gas will be needed to meet new demand growth, and to replace existing long term supply contracts as they expire.
The expiration of large legacy North West Shelf gas supply contracts in the next few years could lead to potential supply decreases and the need to identify new solutions, including onshore processing facilities, to ensure we have a long term supply for the next 20 to 30 years.