Energy
Critical to the development and processing of Western Australia's (WA) resources is the availability of attractive, competitively priced energy. As a result of deregulation of the WA gas market it has extensive supplies of cost-effective energy available.
Energy Resources
Western Australia (WA) possesses abundant fossil fuel resources, particularly coal and natural gas.
Coal is mined in the Collie basin in the WA's South West region and is used for domestic use only, mainly for electricity generation. Efforts are also being made to develop an export market for WA coal. Natural gas is used domestically, principally in resource processing and electricity generation, and is also exported in the form of liquefied natural gas (LNG). The major fields producing natural gas are located within the Carnarvon basin in the State's North West, although domestic gas is also sourced from the Perth Basin.
The diverse environment across the State also provides the opportunity to harness hydro, solar, wind, tidal and biomass as principal renewable energy resources.
WA Government Policy on Securing Domestic Gas Supplies
The Government has developed this policy which achieves a balance between the interests of the gas producers, gas consumers and the WA community at large.
Energy Infrastructure
There are three major electricity networks in WA. These are the South West Interconnected System, North West Interconnected System and the Esperance System. While there are some privately owned electricity transmission and distribution networks within the State, primarily in the Pilbara, Western Power owns the major electricity networks supplying the public. Synergy also owns and operates 28 isolated power systems.
There are currently four major natural gas transmission pipelines supplying the Western Australian gas market:
- Dampier to Bunbury Natural Gas Pipeline (DBNGP), which transports gas from the North West Shelf area to customers in the Geraldton, Perth, Mandurah and Bunbury areas
- Goldfields Gas Pipeline (GGP), which transports gas from the North West Shelf to customers in the Pilbara and Eastern Goldfields regions
- Parmelia Pipeline, which transports gas from various fields in the Perth Basin to customers in the State's South West
- Pilbara Energy Pipeline - which transports gas from the North West Shelf area to Port Hedland
Other major downstream transmission pipelines include the Kambalda to Esperance Gas Pipeline, the Mid West Pipeline and the Telfer Gas Pipeline.
The Office of Energy provides a range of energy-related maps (refer to Related Links).
WA's Competitive Advantage
The report below provides a high level summary of the key issues that compare WA's energy supply and price position to the Eastern Australian energy market (comprising Victoria, New South Wales, Queensland, Tasmania and South Australia).
The report was prepared by Wood Mackenzie Limited, energy specialists. Wood Mackenzie have compiled existing historical information from public domain sources but have provided an independent interpretation of forecasts for supply and demand, market prices, remaining reserves and other views in the comparison of these energy markets.
