According to a report in the Australian newspaper, the council has flagged gas supply and demand as a priority issue, due to the growing domestic gas and liquefied natural gas markets.

The MCE is comprised of state and federal energy ministers. It is chaired by Australian Industry Minister Ian Macfarlane, who has publicly criticised the Western Australian Government several times over the past few months for introducing its own policy to reserve 15% of the state’s gas reserves for domestic use.

Following a meeting last Friday in Sydney, the MCE released a communiqué stating it would establish a joint working group with the Ministerial Council on Mineral and Petroleum Resources to examine “how domestic gas demand might be met in the light of rising global demand for LNG and the accelerated development of a number of LNG projects”.

The Australian reported that the working group would look at issues surrounding domestic gas supplies for existing and future markets, including new gas industries “specifically addressing the issue of balancing the development of resources for export with the supply of domestic natural gas for Australia’s long-term needs”.

WA Premier Alan Carpenter has reportedly welcomed the investigation.