Western Australia (WA) state has released eight onshore blocks for oil and gas exploration, ahead of an expected rise in demand for gas during the next decade.
The areas open for bidding are located across the Canning, northern Carnarvon, Amadeus and Perth basins and vary in size from 400km² to 7,070km². Successful applicants are to be granted a conventional exploration permit within the specified title for a period of six years. The application period closes on 19 January next year.
WA is forecast to have a tight domestic gas market during the coming decade, with demand tipped to increase from 1,099 TJ/d (29.35mn m³/d) in 2023 to 1,278 TJ/d in 2032.
The state bans the export of most onshore gas as LNG despite calls from lobbyists for greater access to international markets, which it argues will reduce the domestic price required for fields to become commercial and improve access to financing.
WA plans to shut down its coal-fired power plants by 2030 and rely more heavily on renewables, gas and battery energy storage systems. Gas currently supplies about 38pc of WA's main grid, the South West Interconnected System.
The granting of federal government-administered offshore permits has slumped. Only four federal offshore petroleum exploration permits were awarded in 2022, three from the 2020 round of acreage release and one from 2019, down from 13 in 2019.
A Federal Court ruling in 2022 has complicated offshore development, with a new mandatory cultural heritage consultation requirement prompting upstream sector leaders to demand the federal government step in to clarify the laws.
