Gas giant Woodside Energy has announced a supply pact with Western Australia's government to address an expected gas shortfall.
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"We are in the process of finalising arrangements with the state to make more gas available for the WA market - very soon," Woodside executive vice president Mark Abbotsford said on Tuesday.
The state's gas supply is finely balanced, with shortfalls forecast by the Australian Energy Market Operator to occur as early as this year.
"We believe this proposed additional supply from Woodside ... largely addresses the expected shortfall in gas in WA," Mr Abbotsford said.
The deal comes ahead of new supply due to enter the market in 2026 from Woodside's massive Scarborough project
The state's domestic supply policy is intended to ensure gas equivalent to 15 per cent of the gas exported from WA is available to local households and businesses.
But like any energy market, WA is not static and the balance between supply and demand is always changing, Mr Abbotsford told the annual Australian Domestic Gas Outlook summit in Sydney.
He said WA has enjoyed a reliable domestic gas supply because it has a successful LNG industry, but to ensure the state's continued energy security, new export-scale gas projects are needed.
The Scarborough gas field, located in the Carnarvon Basin off the coast of WA, is forecast to contribute an estimated 180 terajoules a day of domestic gas as well as serving Asian customers.
Australian Associated Press
