The Chamber of Commerce & Industry has reportedly said the Government’s gas reservation policy could have long-term effects on the state’s gas industry and create distortions in the domestic gas market.

Earlier this month, Premier Alan Carpenter said the Government would ask gas producers in WA to reserve 15% of their gas for domestic use, rather than be exported as liquefied natural gas to markets in Asia and North America.

The announcement followed six months of heated public clashes between Carpenter, Federal Minister for Resources Ian Macfarlane and Woodside chief executive Don Voelte.

Macfarlane has argued that the plan would deter investment and exploration, while Carpenter has said reserving a portion of gas from LNG projects for the domestic market was not a new concept.

The West Australian newspaper today reported that the CCI has also now weighed into the debate.

It quoted CCI chief executive John Langoulant saying the group is now carrying out its own detailed economic modelling of the WA gas market to help industry and Government better grasp the effects of any reservation policy.

Langoulant said Carpenter had to ensure the policy did not hinder expenditure on gas exploration and project development. Allowing it to do so would only work against the key objective of WA industry having long-term supply security, he said.

The chamber’s own research on the domestic gas market is expected to be ready in about a month and could be used in formulating a more considered policy, the newspaper said.