Petroleum industry critical of gas plan -

Australia's oil and gas industry has criticised a Western Australian plan to set aside 15 per cent of the state's gas reserves for domestic use.
The Australian Petroleum Production and Exploration Association (APPEA) said the plan did not promote a robust and viable gas industry and the state would be better served developing more gas supplies.
"The gas industry understands the government's desire to ensure Western Australia has long-term supplies of gas at competitive prices," said APPEA spokesman Richard Ellis.
"However, APPEA and the gas industry do have a concern that proposals to quarantine 15 per cent of WA's gas reserves could, in the long run, reduce supply competition and long-term supply security.
"The government would be better off focusing on how to best promote the development of more onshore and offshore gas fields.
"There is plenty of gas in Western Australia and in the adjacent offshore waters under commonwealth jurisdiction - in fact more than 100 years at current production rates.
"However, many of the large offshore fields have remained undeveloped since their discovery 20 or 30 years ago.
"Gas resources are not an issue. The real challenge that must be addressed is the need to develop more onshore and offshore gas production facilities."
WA Premier Alan Carpenter said on Thursday all of the gas reserves contracted to be supplied to the WA economy as part of the Woodside Petroleum-operated North West Shelf Venture agreement had either been consumed, or would be consumed, within the next 10 to 15 years.
Mr Carpenter said he wanted 15 per cent of all gas reserves held back to meet future domestic demand, rather than being exported as liquefied natural gas to markets in Asia and North America.
"There's some projects that are coming to critical decision making now so the issue has come into sharp focus," Mr Carpenter said.
"We cannot allow a situation where every molecule of gas off the West Australian coast is committed to export contract for 20 years and therefore none is available for the West Australian economy."
Federal Resources Minister Ian Macfarlane described the WA plan as "sheer folly" and Treasurer Peter Costello has said it would be difficult to implement.