The Woodside-operated NWS Venture had aimed to boost domestic gas production by about 100 terajoules a day – or more than 15% – by upgrading turbines and putting a new compressor in existing domestic gas plant.

But The Australian newspaper reported yesterday that the upgrade had failed to meet design expectations and a decision on a new approach would now not be made until the middle of next year.

The failure to expand domestic gas production means Western Australia’s gas prices – already the highest in the country – will continue to increase. It could lead to the postponement of several minerals projects and lead to renewed calls for gas reservations from LNG export projects.

A NWS venture spokesperson told The Australian that the project had met all its sales contract commitments.