THE DOMGAS Alliance says that coal could be the only viable energy source for Western Australia if arrangements such as the North West Shelf joint venture continue.
The DomGas Alliance members include Alinta, Alcoa, Dampier-Bunbury Pipeline, Fortescue and Synergy, represents about 80 per cent of gas use in WA.
The North West Shelf joint venture offers tax incentives to encourage gas exploration and stringent review and transparency of producer applications to hold gas discoveries under retention leases. The problem is that major producers appeared to be using retention leases to park gas resources for increasingly ambitious LNG developments.
The alliance says that the Government should implement a "use it or lose it" approach to leases, to ensure the entry of new explorers and increase competition that will lower prices.
Gas now sells for between $14 and $16 a gigajoule, more than double the cost in the US.
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